FDIC Takes Over 45th Bank In 2009, Home Appraisal Issues

Home Appraisal Issues
I overheard the kids last night talking about doing chores. My daughter said, “If we stop dusting, we could use the coffee table for a message board!” Speaking of message boards, I have seen a few analysts state that they believe property appraisals are keeping a lid on values. More precisely, when home prices start to increase near the end of a recession, even though buyers are willing to pay more, appraisals often come in lower than the agreed-upon price because they’re based on comparable sales from three to six months earlier, when prices were bottoming. Some blame the HVCC rules that force the broker to go through the lender’s management company rather than ordering an appraisal directly from the appraiser. Others, however, believe that the new appraisal process is preventing agents from pushing buyers into purchases above market value, and these values are about the same as they were some months ago.

MGIC Downgrades California For Mortgage Insurance
MGIC reminds their clients that as of tomorrow California is considered a Tier 2 state, like boarding Southwest Airline’s in the “B” group instead of the “A” group, and that two unit properties will no longer be eligible for insurance in Restricted Markets. In addition, after tomorrow nontraditional credit will be limited to a maximum LTV of 90% in all markets, 2-unit properties will be ineligible in all Restricted Markets, and MGIC is renaming its Restricted Markets and Restricted States segments to “Tier One” and “Tier Two”
Restricted Markets.

FDIC Takes Over 45th Bank In 2009
How does one reconcile the fact that the unemployment rate in Japan is at a 5 1/2 year high, yet their stock market rose yesterday to give them their best quarterly gain (23%) since 1995? Or folks seem to be ignoring the fact that five institutions (insured by the FDIC), including two each in Georgia and California and one in Minnesota, were closed last Friday, bringing the total for 2009 to 45. The FDIC estimates the total cost of the five failures alone to its Deposit Insurance Fund to be $264.2 million?

Market Roundup
As many thought, our markets have been a little choppy since last week’s FOMC meeting. The Fed believes that the economy will be slow for quite some time, yet they are in an early-stage exit strategy of its “quantative” easing. And if the economy has indeed bottomed out, in spite of the looming foreclosures, unemployment, commercial real estate issues, etc., etc., rate markets will worry about inflation. And don’t forget the supply issues – although there are no auctions this week, next week we will see, and have to absorb, probably $75-80 billion of 3-, 10- and 30-year securities. For economic news, later this morning we will see Consumer Confidence and the Chicago Purchasing Manager’s Survey, but for now the 10-yr, 5-yr, and mortgage prices are all roughly unchanged from yesterday afternoon’s levels in spite of continued worries about higher rates if the economy picks up steam.

Daily Humor
Why men don’t write advice columns:

Dear Walter:

I hope you can help me here. The other day I set off for work leaving my husband in the house watching the TV as usual.

I hadn’t gone more than a mile down the road when my engine conked out and the car shuddered to a halt. I walked back home to get my husband’s help.
When I got home I couldn’t believe my eyes. He was in the bedroom with a neighbor lady making mad passionate love to her.

I am 32, my husband is 34 and we have been married for twelve years. When I confronted him, he broke down and admitted that he’d been having an affair for the past six months.

I told him to stop or I would leave him. He was let go from his job six months ago and he says he has been feeling increasingly depressed and worthless. I love him very much, but ever since I gave him the ultimatum he has become increasingly distant. I don’t feel I can get through to him anymore.

Can you please help?

Sincerely, Puzzled in Poughkeepsie
Dear Puzzled:

A car stalling after being driven a short distance can be caused by a variety of faults with the engine. Start by checking that there is no debris in the fuel line. If it is clear, check the jubilee clips holding the vacuum hoses onto the intake manifold. If none of these approaches solves the problem, it could be that the fuel pump itself is faulty, causing low fuel delivery pressure to the carburetor float chamber or fuel injection system.

I hope this helps.