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CAN REFIS PAVE THE
ROAD TO RECOVERY?
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 Two
distinguished professors at Columbia Business School have
joined forces on a paper that proposes that a boom in
refinancing activity could lead to an economic recovery.
Glenn Hubbard, dean of the prestigious school, and Chris
Mayer, its vice chair, say that a refi boom could boost home
prices and speed up job growth. Hubbard also served as a
deputy assistant secretary in the Treasury Department and as
chairman of President George W. Bush’s Council of Economic
Advisors.
The dynamic
duo proposed in this paper that the already historically low
mortgage rates be reduced an additional 1% in federally
insured loans for borrowers in good standing. This would
result in a refi boom that would boost the average national
home price by 10%-17%.
“Lower
mortgage rates would allow many homeowners to refinance
their mortgages at more normal spreads and (would) improve
affordability for potential new home buyers,” the paper
read. “The typical borrower would save over $350 per month
and many might be able to get out from under troubled and
complicated negative amortization and adjustable-rate
mortgages."
While
acknowledging that such a move would be harmful to holders
of Treasury bonds, the professors said that the overall
economy would be boosted by higher employment rates.
“Whether
the details of our proposal are adopted, or policymakers
consider other options, it is imperative to restart the
effective normal functioning of the mortgage market,”
Hubbard and Mayer wrote. ”Without strong policy action, the
problems in the housing market will just get worse with
appreciable consequences for all Americans.”
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DESPITE THE ECONOMY,
ELLIOTT® CONTINUES TO EXPAND
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 ELLIOTT® &
Company Appraisers, which began in 1980 as a small, local
appraisal shop in Boone, N.C., has grown to become a company
that performs real estate appraisals, evaluations, research,
consultation and representation in all 50 states of the
United States and beyond.
Further, the
company is continuing to expand into specialized markets.
While many companies have been downsizing due to the current
challenging economic conditions, ELLIOTT® has recently
significantly increased the size of its corporate staff.
“The
staff at ELLIOTT® collectively has the knowledge and ability
to perform a variety of real estate services, effectively
and efficiently, on a national basis,” said Charlie Elliott,
Jr., MAI, SRA, ASA, and president of ELLIOTT® & Company
Appraisers. “Our recent expansion has been in response to
the increased demand for our complex evaluation services.
These include land surveys and diminution in value
appraisals that we provide the title-insurance industry and
litigation-support services to clients who have legal issues
concerning real estate.”
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INVESTORS MOVING FROM
FLIPPING TO RENTING
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According to
a Campbell/Inside Mortgage Finance Housing Pulse Tracking
Survey, real estate investors are currently more likely to
rent out their newly acquired properties than try to sell
them. Campbell Surveys estimated that 48% of the properties
that investors purchased in July 2011 would be rented. The
company’s estimate for the percentage of acquired investment
property being rented in July of last year was only 28%.
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FHA REPORTS MULTIFAMILY
RENTAL LOANS AT RECORD HIGHS
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 The
Federal Housing Administration (FHA) recently announced that
it has endorsed $10.5 billion in multifamily rental housing
loans, a whopping seven times more than it had made only
three years ago.
“Never
in the history of the Federal Housing Administration has
there been such demand for FHA-insured financing to build,
rehabilitate or refinance multifamily apartment properties.”
Read a recent statement from the FHA. “While we’re seeing
record volume, we also recognize we have to accelerate the
time it takes us to process these applications so we
continue to meet demand at the very time the market needs us
the most.”
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STUDY LISTS HIGHEST
AND LOWEST PRICED HOUSING MARKETS
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The Coldwell
Banker Home Listing Report ranked housing markets throughout
the United States by calculating the average listing prices
of four-bedroom homes in each market between September 2010
and March 2011. The 10 most-expensive markets in the report
are (1) Newport Beach, Calif. (average listing price: $2.53
million); (2) Pacific Palisades, Calif. ($1.6 million); (3)
Stone Harbor, N.J. ($1.34 million); (4) Ranchos Palos
Verdes, Calif. ($1.31 million); (5) Saratoga, Calif. ($1.28
million); (6) Los Gatos, Calif. (1.26 million); (7) Weston,
Mass. ($1.23 million); (8) Greenwich, Conn. ($1.15 million);
(9) Mercer Island, Wash. ($1.14 million); and (10)
Cupertino, Calif. (1.14 million). The ten least-expensive
markets are (1) Niagara Falls, N.Y. ($60,280); (2)
Riverdale, Calif. ($61,618); (3) Coolidge, Ariz. ($69,083);
(4) College Park, Ga. ($72,477); (5) Detroit ($73,363); (6)
Hastings, Fla. ($74,910); (7) Cleveland ($76,042); (8)
Lithonia, Ga. ($77,385); (9) Trotwood, Ohio ($77,445); and
Sioux City, Iowa ($80,152).
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 ASK
MARTITIA
QUESTION:
Is
someone with a felony conviction on his or her record eligible to
become a licensed real estate appraiser?
MARTITIA:
Yes, in some
states. Anyone who has been convicted of a felony, but would like to
go through the process of obtaining an appraiser’s license should
check with the appraiser regulatory agency in his or her state. The
Real
Property
Appraiser
Qualification Criteria
currently does not address the situation, however this may change.
The Appraisal Qualifications Board is looking into the requirement
of background checks for anyone who applies for a real estate
appraiser’s license. The earliest date such a requirement can be
initiated is January 1, 2015.
Martitia Mortimer, Elliott's
executive vice president, answers appraisal questions on a regular
basis in Elliott Evaluation News.
 QUOTES
“Patriotism
is supporting your country all of the time, and your government when
it deserves it.”
– Mark Twain
“Experience
enables you to recognize a mistake when you make it again.” –
Franklin P. Jones
“Most
of the important things in the world have been accomplished by
people who have kept on trying when there seemed to be no hope at
all.” – Dale Carnegie
“A
man who wants to lead the orchestra must turn his back on the
crowd.” – Max Lucado
“When
you finally go back to your old home, you find it wasn’t the home
you missed, but your childhood.” – Sam Ewing
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| Newsletter Editor:
kevin@elliottco.com
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3316-A Battleground Avenue
Greensboro, NC 27410 |
Toll Free 800-854-5889
Fax
336-854-7734 |
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