Tag Archives: now’s the time!

Air Date 3-26-13: Sam Mullen, Expert/Author: Emergency Planning for Utilities

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We continue with our Series on Protect Your family.

Our Special Guest: Sam Mullen: Expert/Author:  Emergency Planning for Utilities

Sam Mullen has more than 30 years experience in utility operations, planning, and management. He is the author of three books on contingency and emergency planning and technical communications, including Emergency Planning Guide for Utilities (2nd Edition), and Critical Communications: An Operations Guide for Business. After a long career in power system operations and system control, Mullen founded MPS in 1994, a practice working primarily with utilities. Sam consults on a full range of projects involving power system emergencies.

An increase in major natural disasters—and the growing number of damaging events involving gas, electric, water, and other utilities—has led to heightened concerns about utility operations and public safety. Due to today’s complex, compliance-based environment, utility managers and planners often find it difficult to plan for the action needed to help ensure organization-wide resilience and meet consumer expectations during these incidents. Emergency Planning Guide for Utilities, Second Edition offers a working guide that presents new and field-tested approaches to plan development, training, exercising, and emergency program management.

The book will help utility planners, trainers, and responders—as well as their vendors and suppliers—to more effectively prepare for damaging events and improve the level of the utility’s resilience. It also focuses on planning needed in the National Incident Management System and ICS environment that many utilities are embracing going forward. In doing so, utilities will be able to improve the customer experience while reducing the impact that damaging events have on the utility’s infrastructure, people, and resources.

Check out Sam’s latest book: Emergency Planning Guide for Utilities (2nd Edition)
Emergency Planning Guide for Utilities (2nd Edition)

The Bidding Wars Begin

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The Bidding Wars Begin

Let the Bidding Wars begin! The battle lines have been formed and expanded since 2007. This is a battle that no powers or principalities will be waging. In the truest sense, it’s a duel; “An encounter between two or more individuals with equal numbers on each side that results in combat where both parties are equally armed….”. However, these duels will spill no blood. The weapons used are only pen and paper. And to be sure, with any duel, there are rules,  or Code duello. In this war, the Code duello, is enforced and managed by Realtors, expertly trained in the art of negotiation and real estate laws. It’s a scary place to be without a Realtor.

Why the bidding war?

Answer is simple there are not enough homes for sale to handle the recent explosion of buyers onto the market.  Mortgage Investors Group Loan Officers are being told by customers and agents that multiple contracts on homes are occurring within a very short period of time of one another. Also, market data is revealing that the percentage of sales price to list price  are increasing. Typically markets trend to run about 92% to 95%, but some markets across the country are seeing percentages in excess of 98% with some areas over 100%. In Tennessee, Nashville-Davidson-Murfreesboro-Franklin are at or near the 98% range as far as the ratio of sale prices to list price, putting them in the number one ranked position in the Core Based Statistical Area for May. Nashville area is presently considered one of the most affordable markets in the United Stated and one of the best places to get a job.

This is a great sign for our economy, but these conditions create challenges for all parties, not to mention creating new home price bubbles; sound familiar? As these bidding wars ramp up, other issues will occur, such as appraised values. For example, once the bidding war has bid up a home’s list price, the question arises, will it appraise for that amount? If it doesn’t, the buyer will have to put the difference down in cash or risk losing that hard, fought duel.

What’s being done?

Realtors are trying to add more inventories to their MLS. Builders are scrambling to build more units, but they are finding it hard to find construction workers in some areas. Plus, the sudden increase in building permit requests have created big delays in local government offices. It’s true, the sudden change in our economic environment has created some issues in the home buying and selling markets, however, it will eventually seek some form of normalcy as things stabilize and balance.  If you’re a seller, now’s a great time.

The great news is simply this, the housing market is back!

Check out this CNN video:


Mortgage Investors Group understands there are a lot of choices when it comes to financing the purchase of a new home or refinancing an existing one. Our licensed and experienced loan officers are here to help you gain a better understanding of those options and answer your questions about the loan process, qualifying and the different features of each loan program. We offer everything from conventional mortgages to government loans.

Call us today and take advantage of these incredible market conditions!

The Skinny on Fannie

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the skinny on fannieThe Skinny on Fannie

The Skinny on Fannie

Here’s the skinny on Fannie. Fannie Mae and Freddie Mac have been the lead financial stories since the housing collapse in 2008. These GSE, Government Sponsored Enterprises, are private companies that have the full backing of the Federal Government, whose full purpose is to keep money flowing in the housing market.. On the brink of insolvency, the Feds pour millions of US Tax payers’ money into these companies to keep them from going under. To date, the amount of dollars spent is close to 170 million, with about 37% of that having been paid back to the US Gov in the form of treasury dividends.

Here’s some good news, the economy is starting to take off and the housing market is leading the charge. As a result, FNMA and Freddie Mac are starting to make money. Because of their new found profitability, the Federal government has taken steps to speed up repayment of their debt to the tax payers. Before, FNMA/Freddie were only required to pay back 10% in the form Treasury dividends. They were obligated to make that 10% repayment even if they had an income loss. A loss would require them to borrow from the Treasury to pay the Treasury dividend payment. In the mortgage business we call this negative amortization; in home finances, we call this robbing Peter to pay Paul.

Now there is a much better plan. Since FNMA/Freddie are returning to profitability, the government is requiring that all profits be swept to the repayment of the outstanding debt. If there are no profits, no payment will be required. However, it is fully expected that their profits will continue to rise due to the simple fact that FNMA/Freddie/FHA finance 9 out of every 10 homes. That means that 90% of all home loans are still financed, basically, by the Federal Government.

Which lead us to another point.

There has been a lot of talk about dissolving FNMA/Freddie but until someone figures out how to reduce the government’s financing of 90% of the housing market, FNMA/Freddie will be the main player in supplying the market with liquidity. “I can see FNMA and Freddie Mac merging, perhaps, but I can not see them being totally eliminated, at least not in the near term.” Jesse A Lehn, Executive Vice President, Operations, Mortgage Investors Group.

Here’s the bottom line: the housing market is strong and there is plenty of money to lend.

Mortgage Investors Group understands there are a lot of choices when it comes to financing the purchase of a new home or refinancing an existing one. Our licensed and experienced loan officers are here to help you gain a better understanding of those options and answer your questions about the loan process, qualifying and the different features of each loan program. We offer everything from conventional mortgages to government loans.

Call us today and take advantage of these incredible market conditions!

Timings everything, now’s the time!

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timing

Timings everything, now’s the time!

Timings everything, now’s the time. Mortgage Interests rates are on the rise! The main reason for the increase is simple; the economy is recovering and picking up momentum. The stock market is strong and bonds are no longer in favor, creating an environment of higher mortgage interest rates.  According to Freddie Mac, mortgage rates have hit a six month high.

There is no question, millions of homeowners have been able to take advantage of the historic low interest rates.  It’s true, the main source of mortgage loans have been refinances over that last few years. According to the Mortgage Bankers Association, a little over 70% of total mortgage activity have been refinances. But those numbers are changing. Home sales last year significantly rebounded, as well as new construction starts.   Buyers who have been sitting on the sidelines are now entering back into the market. Quality listings are quickly replacing the previous foreclosure inventory.  Boomerang Buyers, consumers who had previously lost a home at the start of The Great Recession, are now in a position to enter back into the housing market. it is estimated that 1.5 million of them will be eligible for loans by 2014. Business and factories are borrowing money at almost 12.5% above last year which points a better job market and hopefully higher wages in the near future. And don’t forget one other thing, rising home prices. According to S&P Case-Shiller home prices rose 7.3% in 2012.

Here’s the bottom line, expanding economy + rising home prices + rising mortgage interest rates = time to buy.

Timings everything, now’s the time.

Mortgage Investors Group understands there are a lot of choices when it comes to financing the purchase of a new home or refinancing an existing one. Our licensed and experienced loan officers are here to help you gain a better understanding of those options and answer your questions about the loan process, qualifying and the different features of each loan program. We offer everything from conventional mortgages to government loans.

Call us today and take advantage of these incredible market conditions!