The Yale street Community
April 2010
A newsletter devoted to informing our clients, colleagues, and friends about the real estate industry as well as random but hopefully entertaining thoughts about life. Feel free to email us and give feedback on any of the topics.
A few observations:
· Is it really necessary to provide motivational quotes as you drive into a parking garage? The latest one I came across read, “I believe life is constantly testing us for our level of commitment, and life’s greatest rewards are reserved for those who demonstrate a never-ending commitment to act until they achieve. -Anthony Robbins.” For once I would love to park without contemplating my purpose in life.
· There is too much fanfare associated with Fajitas. Half the reason people order the dish is because they know the whole restaurant will eye the steaming skillet they’re about to enjoy. Burritos taste just as good as Fajitas with half the amount of hype!
Big Surprise for Some: File this under “ultimate justice” or “unintended consequences”, depending on your perspective. California has not yet changed its income tax code to provide relief for homeowners who default on their loans. When you default on your home loan and the lender ends up losing tens of thousands of dollars or more after their acquisition of your home through foreclosure, the lender informs the IRS and Franchise Tax Board that you had “income” for the amount of that loss. That can be a pretty nasty surprise come April 15th!
Final Four: Who would have thought that only one of the regional #1 seeds would reach the Final Four? Don’t worry, you weren’t the only ones. ESPN reports that of the 4.8 million people who entered their tournament challenge, only 200 picked Michigan State, Duke, West Virginia and Butler in the Final Four. Alas, none of you who entered our informal pool were winners.
Random Question of the Day: Don’t you feel really good about yourself when you pull to the side of the road for an ambulance or fire truck with its lights on? Never mind that it’s the law, I feel like I’m Mother Teresa by pulling over. If you feel the same way I do, I think it’s time we do some more charity work…
Market Trends: The Federal Reserve ended its purchase of Mortgage Backed Securities (pools of mortgages) from Fannie Mae, Freddie Mac and Ginnie Mae on March 31st. Most people do not know that the Fed was effectively the ONLY buyer of mortgage loans over the past year, to the tune of $1.25 trillion. The Fed is hoping the normal sale of loans by Wall Street brokers will pick up the slack in April. We’ll be watching this closely. Mortgage rates have already ticked up a bit in anticipation of greater returns required by private investors. Bankrate’s survey of large banks found an average 5.23% rate for a 30 year fixed rate loan.
Home Foreclosure Inventory to Rise: S&P, Moody’s and First American are all weighing in on estimating how many homes are heading for foreclosure. Banks are still trying to save borrowers with the various loan modification programs, but it’s becoming apparent that many of those won’t work. They expect to see between 1.7 million and 7.0 million more homes going on the market as “bank owned”. There will be opportunities out there for those looking for a home or investment.
About Yale Street: Yale Street is a mortgage firm specializing in single family and apartment lending, primarily in Southern California. We strive to keep our rates as low as possible. We’ll even publish them on our website so you can track us against the national averages. Best of all, we will do it your way. We can come to you, you can visit our website, or maybe we can grab a Starbucks together. Whichever you prefer. Give us a call or send us an email.
Mark Van Dellen
(818) 949-8062
CA DRE License # 01872437
CA DRE Corp License # 08173119
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