U.S Housingg shows recovery signs, after it left a lot of homeowners with properties that were worth less than their mortgages.
The S&P/Case-Shiller index said yesterday that the home prices in 20 cities rose a 0.6%. And last week The National Association of Realtors reported that the existing home process advanced a 0.4% this march for the first time in four months.
“Prices could go further, but as long as mortgagee rates don’t jump and employment continues to improve, we should see housing play a key role in preventing a double dip recession” said economist Karl Case, he, with Robert Shiller created the S&P/Case-Shiller index. He also added “We’ve turned a corner with housing, though it is hard to see any robustness”.
One of the things that are supporting the housing demand is an abundance of inexpensive homes and a stabilizing job market, according to chief U.S economist for Barclays in New York Dean Maki.
Barclays Maki said: We’ll see a surge as buyers rush to close before the deadline, follow by a subsequent falloff… After that dip, we expect home sales to increase for the rest of the year.” And according Neal Soss, chief economist at Credit Suisse Holdings in USA in NY, employment is the key to this situation, to housing outlook, and the road to recovery “You’ve really got to heal the fundamentals, such as the employment situation, rather than just address the symptoms with a program like tax credit, we see housing as a lagging sector for some years into the future.”
Although, the recovery can be different for residential construction, According to Donald Kohn in a speech on April 8 said: “I do not expect that the recovery in housing construction will boost growth substantially this year, in a contrast to its usual pattern early in economic recoveries, a large overhang of vacant homes is likely to weigh on new construction for some time”.
As Case said, “there is a light at the end if this real state tunnel, but there are long of things, like inventory, in the way”
Friday, April 30, 2010
Tuesday, April 27, 2010
$10,000 Homebuyer Tax Credit
Governor Schwarzenegger Signs $10,000 Homebuyer Tax Credit Legislation
Governor Arnold Schwarzenegger today returned to the La Ventana Homes project in Fresno where he kicked off his
campaign to extend and expand the hugely successful homebuyer tax credit to sign legislation that will do just that.
AB 183, authored by Assemblymember Anna Caballero (D-Salinas) and Senator Roy Ashburn (R-Bakersfield), will
provide a tax credit of up to $10,000 to Californians who are buying their first home or purchasing a brand new
home. This legislation, part of the Governor’s larger California Jobs Initiative, will play a key role in getting our
economy moving again by encouraging home ownership and stimulating job creation.
“I have been up and down the state pushing this important housing bill that will get people off the fence and into
homes while creating jobs and stimulating our economy – and today I am proud to take action and put it into law,”
said Governor Schwarzenegger. “Creating jobs is my number one priority and I am glad that I have been able to sign
two job-creating bills in two days. I applaud the legislature for their great work and encourage them to keep it up and
pass the remaining job-creating elements of my California Jobs Initiative.”
AB 183 was passed by the legislature on March 22 and gives the Franchise Tax Board authority to extend a total of
$200 million in tax credits to California homebuyers; $100 million for buyers of new, unoccupied homes and another
$100 million for first-time buyers of existing homes. The credit will be extended from May 1, 2010 to December 31,
2010. The tax credit will be available to buyers on a first-come, first-served basis and is applied in equal amounts
over a period of three taxable years. To qualify, the buyer must not be a dependant and must purchase a home that
does not belong to a relative.
Governor Schwarzenegger fought hard to extend and expand the homebuyer tax credit after its successful run in
2009. That $100 million tax credit, which was approved in February 2009, ran out after just four months with 10,659
Californians claiming the credit – increasing home purchases, jumpstarting building projects and boosting local
economies. In fact, La Ventana Homes saw a 300 percent increase in sales when the tax credit went into effect.
The homebuyer tax credit is a part of the larger California Jobs Initiative that the Governor proposed in his State of
the State address in January to create jobs and stimulate the economy. Today’s bill is the second piece of it to be
approved by the legislature. A sales tax exemption on green-tech manufacturing equipment was also approved to
encourage green businesses to relocate and invest in California. The Governor signed that yesterday.
Chris Arco 1st Nationwide Mortgage www.1stnwm.com
Governor Arnold Schwarzenegger today returned to the La Ventana Homes project in Fresno where he kicked off his
campaign to extend and expand the hugely successful homebuyer tax credit to sign legislation that will do just that.
AB 183, authored by Assemblymember Anna Caballero (D-Salinas) and Senator Roy Ashburn (R-Bakersfield), will
provide a tax credit of up to $10,000 to Californians who are buying their first home or purchasing a brand new
home. This legislation, part of the Governor’s larger California Jobs Initiative, will play a key role in getting our
economy moving again by encouraging home ownership and stimulating job creation.
“I have been up and down the state pushing this important housing bill that will get people off the fence and into
homes while creating jobs and stimulating our economy – and today I am proud to take action and put it into law,”
said Governor Schwarzenegger. “Creating jobs is my number one priority and I am glad that I have been able to sign
two job-creating bills in two days. I applaud the legislature for their great work and encourage them to keep it up and
pass the remaining job-creating elements of my California Jobs Initiative.”
AB 183 was passed by the legislature on March 22 and gives the Franchise Tax Board authority to extend a total of
$200 million in tax credits to California homebuyers; $100 million for buyers of new, unoccupied homes and another
$100 million for first-time buyers of existing homes. The credit will be extended from May 1, 2010 to December 31,
2010. The tax credit will be available to buyers on a first-come, first-served basis and is applied in equal amounts
over a period of three taxable years. To qualify, the buyer must not be a dependant and must purchase a home that
does not belong to a relative.
Governor Schwarzenegger fought hard to extend and expand the homebuyer tax credit after its successful run in
2009. That $100 million tax credit, which was approved in February 2009, ran out after just four months with 10,659
Californians claiming the credit – increasing home purchases, jumpstarting building projects and boosting local
economies. In fact, La Ventana Homes saw a 300 percent increase in sales when the tax credit went into effect.
The homebuyer tax credit is a part of the larger California Jobs Initiative that the Governor proposed in his State of
the State address in January to create jobs and stimulate the economy. Today’s bill is the second piece of it to be
approved by the legislature. A sales tax exemption on green-tech manufacturing equipment was also approved to
encourage green businesses to relocate and invest in California. The Governor signed that yesterday.
Chris Arco 1st Nationwide Mortgage www.1stnwm.com
Friday, April 23, 2010
Mortgage News
A More than Expected Rise
By: Chris Arco, Editor April 23, 2010 Home sales of previously occupied homes jumped a 6.8% in March, reversing three months of decline, being this highest level since December according to the National Association of Realtors. Stuart Hoffman, Chief economist at PNC Financial Services Group said that “the spring selling season would be a success, and probably the most active we’re seen in years…” These sales, according to economist by Thomson Reuters, had been expected to rise 5.2 percent to 5.28 Million. And these results can help us see that the housing market is stabilizing after going through bad and devastating time.First time buyers are the ones that are taking advantage of the Tax Credit, it brought more buyers into the market. According to Lawrence Yun, the Realtors group’s chief economist said:”The tax credit has done its job” at a conference, adding: “it helped stabilized prices”. The dead line for buyers to apply is April 30th; real states agents said that is stimulating sales, but it also is raising questions about whether this path is going to float by itself without the government help; but others, like Yun says that there is going to be enough demand on the second half of the year. The direction of the housing market can also be dictated by the Foreclosures after the Tax Credit is finished, Foreclosures are making the market more affordable to the buyers. “Housing is coming back” said Hoffman, “But it has a long way to go” At CAMREO we offer REO management to real estate lenders and investors. (Advertisement).
Morgan profit up 55%
Strength from its investment banking arm pushed first-quarter profit at J.P. Morgan Chase up 55%, the New York banking giant said Wednesday.
Jamie Dimon, chairman and chief executive, said in a statement that the results "reflected another strong quarter for the investment bank, particularly in fixed income markets, and continued solid performance across asset management, commercial banking and retail banking."
However, "these good results were partially offset by high losses in the consumer credit portfolios," added Dimon.
J.P. Morgan (JPM, Trade ) reported net income of $3.3 billion, or 74 cents a share, up from $2.1 billion, or 40 cents, earned in the year-ago first quarter. Total net revenue was up 11%, to $27.7 billion.
Analysts surveyed by FactSet Research had expected, on average, a profit of 65 cents a share and revenue of $25.9 billion.
J.P. Morgan shares rose nearly 3% in early action, and the stock has climbed over 53% over the last 12 months. The performance helped lift U.S. stocks on Wednesday.
J.P. Morgan was one of the big banks to accept government support during the 2008 financial crisis, but it repaid the money quickly and emerged stronger than rivals such as Citigroup Inc. (C, Trade ) and Bank of America Corp. (BAC, Trade ).
While its consumer and commercial lending businesses are hampered by bad loans, the Dow Jones Industrial Average component's investment bank has benefited as the market rebound encouraged companies to raise new capital by selling equity or refinancing themselves by issuing new debt.
J.P. Morgan said its investment bank generated net income of $2.5 billion in the first quarter, up from $1.6 billion a year earlier.
"These results reflected strong net revenue, particularly in fixed income markets, and a benefit from the provision for credit losses," said the firm in a statement.
J.P. Morgan was the lead global underwriter on equity and equity-linked offerings during the first quarter. It was also the top underwriter on investment-grade corporate bond sales and junk bond offerings in the period, according to data from Dealogic and CreditSights, an independent fixed-income research firm. J.P. Morgan collects hefty fees for such services.
In a research note published after the results were announced, Standard & Poor's analyst Matthew Albrecht maintained his strong buy rating on the firm.
"Strong fixed income trading results and a declining loan loss provision were able to offset higher legal reserves," wrote Albrecht. "Delinquency rates have stabilized or improved across most businesses, suggesting further reductions in loan loss provisions. We also expect interest spreads to remain favorable until rates start rising, helping to offset a shrinking loan balance."
The provision for credit losses in the firm's retail financial services unit was $3.7 billion.
J.P. Morgan's retail financial services division showed a loss of $131 million in the first quarter, compared to a profit of $474 million in the same period of 2009.
"Economic pressure on consumers continued to drive losses for the mortgage and home equity portfolios," said J.P. Morgan.
The firm's retail banking unit saw a profit of $898 million, up 4%.
Card services, which houses J.P. Morgan's big credit card business, lost $303 million in the first quarter, compared to a loss of $547 million in the year-ago period. Commercial banking generated a profit of $390 million in the latest period, up slightly on the $338 million made in the first quarter of 2009.
Treasury and securities services reported a $279 million profit in the period, a 9% drop, while asset management profit jumped 75%, to $392 million.
Dimon also said that J.P. Morgan has plans to hire 9,000 new staff in the U.S., and aims for further additions worldwide.
Morgan profit up 55%
Strength from its investment banking arm pushed first-quarter profit at J.P. Morgan Chase up 55%, the New York banking giant said Wednesday.
Jamie Dimon, chairman and chief executive, said in a statement that the results "reflected another strong quarter for the investment bank, particularly in fixed income markets, and continued solid performance across asset management, commercial banking and retail banking."
However, "these good results were partially offset by high losses in the consumer credit portfolios," added Dimon.
J.P. Morgan (JPM, Trade ) reported net income of $3.3 billion, or 74 cents a share, up from $2.1 billion, or 40 cents, earned in the year-ago first quarter. Total net revenue was up 11%, to $27.7 billion.
Analysts surveyed by FactSet Research had expected, on average, a profit of 65 cents a share and revenue of $25.9 billion.
J.P. Morgan shares rose nearly 3% in early action, and the stock has climbed over 53% over the last 12 months. The performance helped lift U.S. stocks on Wednesday.
J.P. Morgan was one of the big banks to accept government support during the 2008 financial crisis, but it repaid the money quickly and emerged stronger than rivals such as Citigroup Inc. (C, Trade ) and Bank of America Corp. (BAC, Trade ).
While its consumer and commercial lending businesses are hampered by bad loans, the Dow Jones Industrial Average component's investment bank has benefited as the market rebound encouraged companies to raise new capital by selling equity or refinancing themselves by issuing new debt.
J.P. Morgan said its investment bank generated net income of $2.5 billion in the first quarter, up from $1.6 billion a year earlier.
"These results reflected strong net revenue, particularly in fixed income markets, and a benefit from the provision for credit losses," said the firm in a statement.
J.P. Morgan was the lead global underwriter on equity and equity-linked offerings during the first quarter. It was also the top underwriter on investment-grade corporate bond sales and junk bond offerings in the period, according to data from Dealogic and CreditSights, an independent fixed-income research firm. J.P. Morgan collects hefty fees for such services.
In a research note published after the results were announced, Standard & Poor's analyst Matthew Albrecht maintained his strong buy rating on the firm.
"Strong fixed income trading results and a declining loan loss provision were able to offset higher legal reserves," wrote Albrecht. "Delinquency rates have stabilized or improved across most businesses, suggesting further reductions in loan loss provisions. We also expect interest spreads to remain favorable until rates start rising, helping to offset a shrinking loan balance."
The provision for credit losses in the firm's retail financial services unit was $3.7 billion.
J.P. Morgan's retail financial services division showed a loss of $131 million in the first quarter, compared to a profit of $474 million in the same period of 2009.
"Economic pressure on consumers continued to drive losses for the mortgage and home equity portfolios," said J.P. Morgan.
The firm's retail banking unit saw a profit of $898 million, up 4%.
Card services, which houses J.P. Morgan's big credit card business, lost $303 million in the first quarter, compared to a loss of $547 million in the year-ago period. Commercial banking generated a profit of $390 million in the latest period, up slightly on the $338 million made in the first quarter of 2009.
Treasury and securities services reported a $279 million profit in the period, a 9% drop, while asset management profit jumped 75%, to $392 million.
Dimon also said that J.P. Morgan has plans to hire 9,000 new staff in the U.S., and aims for further additions worldwide. 1st Nationwide Mortgage, www.1stnwm.com
By: Chris Arco, Editor April 23, 2010 Home sales of previously occupied homes jumped a 6.8% in March, reversing three months of decline, being this highest level since December according to the National Association of Realtors. Stuart Hoffman, Chief economist at PNC Financial Services Group said that “the spring selling season would be a success, and probably the most active we’re seen in years…” These sales, according to economist by Thomson Reuters, had been expected to rise 5.2 percent to 5.28 Million. And these results can help us see that the housing market is stabilizing after going through bad and devastating time.First time buyers are the ones that are taking advantage of the Tax Credit, it brought more buyers into the market. According to Lawrence Yun, the Realtors group’s chief economist said:”The tax credit has done its job” at a conference, adding: “it helped stabilized prices”. The dead line for buyers to apply is April 30th; real states agents said that is stimulating sales, but it also is raising questions about whether this path is going to float by itself without the government help; but others, like Yun says that there is going to be enough demand on the second half of the year. The direction of the housing market can also be dictated by the Foreclosures after the Tax Credit is finished, Foreclosures are making the market more affordable to the buyers. “Housing is coming back” said Hoffman, “But it has a long way to go” At CAMREO we offer REO management to real estate lenders and investors. (Advertisement).
Morgan profit up 55%
Strength from its investment banking arm pushed first-quarter profit at J.P. Morgan Chase up 55%, the New York banking giant said Wednesday.
Jamie Dimon, chairman and chief executive, said in a statement that the results "reflected another strong quarter for the investment bank, particularly in fixed income markets, and continued solid performance across asset management, commercial banking and retail banking."
However, "these good results were partially offset by high losses in the consumer credit portfolios," added Dimon.
J.P. Morgan (JPM, Trade ) reported net income of $3.3 billion, or 74 cents a share, up from $2.1 billion, or 40 cents, earned in the year-ago first quarter. Total net revenue was up 11%, to $27.7 billion.
Analysts surveyed by FactSet Research had expected, on average, a profit of 65 cents a share and revenue of $25.9 billion.
J.P. Morgan shares rose nearly 3% in early action, and the stock has climbed over 53% over the last 12 months. The performance helped lift U.S. stocks on Wednesday.
J.P. Morgan was one of the big banks to accept government support during the 2008 financial crisis, but it repaid the money quickly and emerged stronger than rivals such as Citigroup Inc. (C, Trade ) and Bank of America Corp. (BAC, Trade ).
While its consumer and commercial lending businesses are hampered by bad loans, the Dow Jones Industrial Average component's investment bank has benefited as the market rebound encouraged companies to raise new capital by selling equity or refinancing themselves by issuing new debt.
J.P. Morgan said its investment bank generated net income of $2.5 billion in the first quarter, up from $1.6 billion a year earlier.
"These results reflected strong net revenue, particularly in fixed income markets, and a benefit from the provision for credit losses," said the firm in a statement.
J.P. Morgan was the lead global underwriter on equity and equity-linked offerings during the first quarter. It was also the top underwriter on investment-grade corporate bond sales and junk bond offerings in the period, according to data from Dealogic and CreditSights, an independent fixed-income research firm. J.P. Morgan collects hefty fees for such services.
In a research note published after the results were announced, Standard & Poor's analyst Matthew Albrecht maintained his strong buy rating on the firm.
"Strong fixed income trading results and a declining loan loss provision were able to offset higher legal reserves," wrote Albrecht. "Delinquency rates have stabilized or improved across most businesses, suggesting further reductions in loan loss provisions. We also expect interest spreads to remain favorable until rates start rising, helping to offset a shrinking loan balance."
The provision for credit losses in the firm's retail financial services unit was $3.7 billion.
J.P. Morgan's retail financial services division showed a loss of $131 million in the first quarter, compared to a profit of $474 million in the same period of 2009.
"Economic pressure on consumers continued to drive losses for the mortgage and home equity portfolios," said J.P. Morgan.
The firm's retail banking unit saw a profit of $898 million, up 4%.
Card services, which houses J.P. Morgan's big credit card business, lost $303 million in the first quarter, compared to a loss of $547 million in the year-ago period. Commercial banking generated a profit of $390 million in the latest period, up slightly on the $338 million made in the first quarter of 2009.
Treasury and securities services reported a $279 million profit in the period, a 9% drop, while asset management profit jumped 75%, to $392 million.
Dimon also said that J.P. Morgan has plans to hire 9,000 new staff in the U.S., and aims for further additions worldwide.
Morgan profit up 55%
Strength from its investment banking arm pushed first-quarter profit at J.P. Morgan Chase up 55%, the New York banking giant said Wednesday.
Jamie Dimon, chairman and chief executive, said in a statement that the results "reflected another strong quarter for the investment bank, particularly in fixed income markets, and continued solid performance across asset management, commercial banking and retail banking."
However, "these good results were partially offset by high losses in the consumer credit portfolios," added Dimon.
J.P. Morgan (JPM, Trade ) reported net income of $3.3 billion, or 74 cents a share, up from $2.1 billion, or 40 cents, earned in the year-ago first quarter. Total net revenue was up 11%, to $27.7 billion.
Analysts surveyed by FactSet Research had expected, on average, a profit of 65 cents a share and revenue of $25.9 billion.
J.P. Morgan shares rose nearly 3% in early action, and the stock has climbed over 53% over the last 12 months. The performance helped lift U.S. stocks on Wednesday.
J.P. Morgan was one of the big banks to accept government support during the 2008 financial crisis, but it repaid the money quickly and emerged stronger than rivals such as Citigroup Inc. (C, Trade ) and Bank of America Corp. (BAC, Trade ).
While its consumer and commercial lending businesses are hampered by bad loans, the Dow Jones Industrial Average component's investment bank has benefited as the market rebound encouraged companies to raise new capital by selling equity or refinancing themselves by issuing new debt.
J.P. Morgan said its investment bank generated net income of $2.5 billion in the first quarter, up from $1.6 billion a year earlier.
"These results reflected strong net revenue, particularly in fixed income markets, and a benefit from the provision for credit losses," said the firm in a statement.
J.P. Morgan was the lead global underwriter on equity and equity-linked offerings during the first quarter. It was also the top underwriter on investment-grade corporate bond sales and junk bond offerings in the period, according to data from Dealogic and CreditSights, an independent fixed-income research firm. J.P. Morgan collects hefty fees for such services.
In a research note published after the results were announced, Standard & Poor's analyst Matthew Albrecht maintained his strong buy rating on the firm.
"Strong fixed income trading results and a declining loan loss provision were able to offset higher legal reserves," wrote Albrecht. "Delinquency rates have stabilized or improved across most businesses, suggesting further reductions in loan loss provisions. We also expect interest spreads to remain favorable until rates start rising, helping to offset a shrinking loan balance."
The provision for credit losses in the firm's retail financial services unit was $3.7 billion.
J.P. Morgan's retail financial services division showed a loss of $131 million in the first quarter, compared to a profit of $474 million in the same period of 2009.
"Economic pressure on consumers continued to drive losses for the mortgage and home equity portfolios," said J.P. Morgan.
The firm's retail banking unit saw a profit of $898 million, up 4%.
Card services, which houses J.P. Morgan's big credit card business, lost $303 million in the first quarter, compared to a loss of $547 million in the year-ago period. Commercial banking generated a profit of $390 million in the latest period, up slightly on the $338 million made in the first quarter of 2009.
Treasury and securities services reported a $279 million profit in the period, a 9% drop, while asset management profit jumped 75%, to $392 million.
Dimon also said that J.P. Morgan has plans to hire 9,000 new staff in the U.S., and aims for further additions worldwide. 1st Nationwide Mortgage, www.1stnwm.com
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