Posted by Ann Stickel on February 15, 2010
Consumer Protection Act of 2009
In December, the U.S. House of Representatives approved – by a vote of 223 to 202 – the Wall Street Reform and Consumer Protection Act of 2009, otherwise known as H.R. 4173. This bill proposes sweeping reforms that have the potential to profoundly impact how financial companies operate and what consumers can be offered in terms of products and services.
A culmination of many months of work, the authors of the bill sought a way to protect consumers and the economy through stronger controls. While many agree that the legislation does introduce new means to achieve these goals, concern remains about the unintended consequences this bill may produce.
In its Dec. 17, 2009 public statement, the American Bankers Association said it “supports broad reform of the banking regulatory system and has expressed this view in testimony before Congress; (this includes)…the formation of a council charged with overseeing systemic risk, creation of a mechanism for the orderly resolution of systemically important non-banks, and ending too-big-to-fail. Although some improvements were made (in the bill), ABA remains opposed to this legislation as passed by the House.”
The Senate is expected to propose comparable reform legislation with some significant changes.
Financial Services Oversight
Currently, H.R. 4173 covers a comprehensive number of issues including the creation of an interagency Financial Services Oversight Council that would identify and regulate financial institutions that pose systemic risks to the country.
The bill supports heightened oversight and regulation for financial institutions and a process to dissolve firms that fail. This includes publicly identifying and subjecting financial companies to stricter standards if it is determined that the company’s performance or mix of activities could pose a threat to the financial stability of the economy. The council would be responsible for imposing a special assessment on financial companies that fail to pay for any shortfall in TARP that would add to the national debt.
(more…)
Posted by Ann Stickel on November 30, 2009
Refinances and first-time homebuyer property sales largely contributed to third quarter volume
Consumers were active in the housing market during the third quarter with refinance and purchase applications. Existing homeowners fueled the refi activity, and first-time homebuyers accounted for 43% of home purchases in August, according to the Sept. 18 issue of Inside Mortgage Finance.
In a September 2009 Wells Fargo Home Mortgage survey, 56% of first-time homebuyers cited the $8,000 tax credit for their reason to purchase. Low interest rates drove 66% of these borrowers, and 74% attributed the decision to low home prices.
In the same survey, renters shared their reasons for intending to purchase their first home within six months. Roughly 84% said low home prices were the reason, 74% cited low interest rates, and 72% referenced the tax credit as the key deciding factor.
As of the publication date, there is still debate in Congress about whether the first-time homebuyer tax credit will be extended beyond the Nov. 30 deadline.
When will local housing markets recover?
Recent news released from the National Association of REALTORS® showed that pending home sales have increased for seven consecutive months based on contracts signed in August. In addition, the S&P/Case-Shiller Home Price Indices demonstrated that the annual decline in home price values continues to slow and that many markets have experienced some sustained monthly increases.
(more…)
Posted by Matthew Haber on June 16, 2009
Say goodbye to your rabbit ears… never again to be adorned with fistfuls of aluminum foil twisted in obscure ways to pull in the perfect TV signal…
Truthfully, most everyone removed rabbit ears from their living room décor years ago… Despite this, the PSAs over the past 6 months – about the change to digital – have been non-stop.
The Housing and Economic Recovery Act of 2008 was passed at about the same time the digital signal PSAs started. Also referred to as HERA, the provisions contained in the Act will change the way of conducting Real Estate business much like digital changed the way we receive TV signals. The following may serve as a PSA to everyone involved in the purchase of a home in the future. (more…)
