QUINCY MASSACHUSETTS ***** REAL ESTATE *****: Norfolk County Register of Deeds Says You Can Get a Certified Copy of Your Deed Directly from the Registry of Deeds

QUINCY MASSACHUSETTS ***** REAL ESTATE *****: Norfolk County Register of Deeds Says You Can Get a Certified Copy of Your Deed Directly from the Registry of Deeds

Yeasterday's Hearing:House Subcommittee on Financial Institutions and Consumer Credit:"Subprime and Predatory Mortgage Lending..."

Call it like it is! Yesterday, the House Subcommittee on Financial Institutions and Consumer Credit had a hearing on "Subprime and Predatory Mortgage Lending: New Regulatory Guidance, Current Market Conditions and Effects on Regulated Financial Institutions. Among the
panelists where:

Witness List & Prepared Testimony:
Panel One: The Honorable Sheila Bair, Chairman, Federal Deposit Insurance Corporation • The Honorable John Reich, Director, Office of Thrift Supervision • The Honorable JoAnn Johnson, Chairman, National Credit Union Administration • Mr. E. Wayne Rushton, Senior Deputy Comptroller, Office of the Comptroller of the Currency • Ms. Sandra F. Braunstein, Director, Division of Consumer and Community Affairs, Federal Reserve Board • Mr. Steve Antonakes, Commissioner of Banks, Massachusetts Division of Banks, on behalf of Conference of State Banking Supervisors

Panel Two: Mr. Michael Calhoun, President, Center for Responsible Lending • Mr. John Taylor, President & CEO, National Community Reinvestment Coalition • Mr. Allen Fishbein, Director of Housing and Credit Policy, Consumer Federation of America • Mr. John Robbins, Chairman, Mortgage Bankers Association • Mr. Harry H. Dinham, CMC, President, National Association of Mortgage Brokers • Mr. Alex J. Pollock, Resident Fellow, American Enterprise Institute

Available Member Statements: Congresswoman Brown-Waite, Congressman Gilmor


In her remarks, the Honorable Sheila Bair, Chairman of the FDIC said "...... To be sure, many subprime borrowers have benefited from the expansion of mortgage credit. However, rather than building wealth, many other borrowers are struggling to keep their homes. Many subprime borrowers have little financial cushion in the event of personal emergencies or economic downturns. In addition, many subprime borrowers have been the targets of practices that are highly troubling, if not predatory."
[Text emphasis is mine.]

"Repeat refinancings have taken equity from their homes and adjustable rate features have challenged their ability to continue making payments. In previous years, many of these borrowers could have refinanced their mortgages or sold their homes at a profit to repay their debt in full. Now, as home prices have stagnated or even declined in many areas of the country, more borrowers find themselves trapped in mortgages they cannot afford to pay. Abusive lending practices that result in home ownership that builds debt rather than wealth harm not only individual consumers, but undermine the important societal benefits of home ownership...."

For a full copy of her testimony, which is worthwhile reading,or any of the other witnesses at the hearing, click on her link, above.

I hinted at this last week , only not too many people were willing to say that the real issue are the practices, legal or otherwise, that have brought this about.

In an article in today's Boston Globe on the hearing, columnist Kimberly Blanton writes about one woman who ".. learned at the closing, she told the committee, her mortgage payment would be $1000 higher than she had been promised by the broker, a friend of her boyfriend"..
[Text emphasis is mine.]

Obviously this isn't over. What legislation or regulation should there be to prevent this from reoccuring? What should and can be done for those who went into these loans without fully understanding the consequences? And perhaps lastly, what action might be taken with those who knowingly created this situation?

Annex Real Estate School Announces April Real Estate Salespersons Class in Hanover

It's been a while, but Annex Real Estate School has just scheduled a Massachusetts Real Estate Salespersons Class at its' Hanover location, 1130 Washington Street, Hanover. The school is conveniently located on Rte 53, approximately 1 mile south of the Hanover Mall.

This course is intended for the individual who would like to start their career in Real Estate by preparing to take the Massachusetts examination to become a licensed Real Real Estate Salesperson.

An application for the course may be downloaded HERE

Questions about the course may be directed to AnnexRealEstateSchool@comcast.net or 781-829-4210 x 46.

Federal Reserve Quiz

I discover a quiz about the Federal Reserve System . It is posted online by the Associated Press. I hope you find it interesting. After you've taken this quiz, why don't you come back here and leave a comment.

Breaking News: Fed Leaves Rates Alone

Just released news: "The Fed leaves rates alone at 5.25 %" The stock market reacted with a short spike up, but that seems to be settling back.

A link to the official news release is found here.

More on this later.

Will Subprime Lending Practices Crash the Real Estate Market ?

We can't avoid the negative news about the subprime lending market.

There are several issues here. They all seem to center around the fact that loans were made that should not have been.

First we need to look at the definition of a subprime loan. From HUD, we read "Typically, subprime loans are for persons with blemished or limited credit histories. The loans carry a higher rate of interest than prime loans to compensate for increased credit risk." Not only are the loans at higher rates but they usually have higher fee and costs.

Yesterday, an article in the Boston Globe , looks at the potential impact that this lending market may have on the housing industry in the near term. Quoting former Federal Reserve chairman Alan Greenspan as having 'predicted the subprime shakeout will worsen. He said subprime mortgage defaults would spread to other parts of the economy, especially if home prices decline. "'If prices go down, we will have problems -- problems in the sense of spillover to other areas," Greenspan said at a Futures Industry Association meeting in Boca Raton, Fla. on Thursday.'

Well, it looks like sub prime lending has become the topic of the week. The March 26th issue of Business Week has three article that reference the subject. I picked up today's Sunday Globe, (March 18) and there it is again.

Although only a small fraction of the all the loans made, why are they achieving this notoriety? Well, there are several considerations. First, it appears that the default rate on this loans is disproportionatly high. Second, some recognizable names from the financial and investment world are being mentioned. Third, we read that some of the people caught up in this claim that they were not fully made aware of the perils of these loans, and that others were placed in the subprime loans even though there qualifications did not require these programs.

With all of the stories in print and online, no one has yet come out and said "predatory lending"

The general consensus seems to be that although there will be many people hurt by all of this, and there will be a negative to both the residential real estate market. This will not result in a crash in either.

If there is to be any good to come out of this, it will have to be regulations that require better disclosure, and perhaps place limitations on some of the loan products. As several of today's commentators have said, "the American dream has become the American nightmare".

Route 3 Corridor Show More Real Estate Action

More buyers are out there , looking for the home to buy. At the same time, interest in a Real Estate Career seems to be picking up!

Real Estate Salesperson Class Enrollment Heats Up

Despite the seasonally cold weather, enrollment in the March, Real Estate Salesperson pre-licensing classes at Annex Real Estate School is up from the mid-winter low. The increased class size might be considered to be a measure of consumer interest and confidence in the local real estate market.

Generally, when potential real estate agents feel that there will be an opportunity to make make money, they will enroll in class in order to qualify for the state licensing exam.

There has also been a noticeable increase in the turnout at open houses. Again, with gas prices on the increase, consumers are not just going to drive around to view Open Houses, if they do not intend to buy.

So, despite the bone chilling weather, let's look for a positive sign of the Spring market!

QUINCY MASSACHUSETTS ***** REAL ESTATE *****: Real Estate Interest and Real Estate Classes#links

QUINCY MASSACHUSETTS ***** REAL ESTATE *****: Real Estate Interest and Real Estate Classes#links

We're really excited, as we see more interest from real estate buyers and real estate students! Accordingly, Annex Real Estate School has scheduled both an intensive weekend Real Estate Salesperson starting on March 10th, and a tradtional 4 week course starting on March 13th. You can call the school at 617-472-4330 ext 333 for more information and to register. Email at AnnexRealEsateSchool@comcast.net.

Visit the school's website: http://AnnexRealEstateSchool.Home.Comcast.net