HOMEOWNERS INSURANCE

Florida’s Hurricane Catastrophe Fund has yet another concern: a possible credit problem. According to A.M. Best, the nation’s current credit crunch could impact the Cat Fund’s ability to sell bonds on Wall Street should it need to reimburse insurers following a major hurricane.

CHARITY

The foreclosure problem has given something good to the country’s best-known housing charity: Cheap properties for sale. Some Habitat for Humanity chapters have seized the buying opportunities.

BE ‘FIREWISE’

Here is some good advice for residents of Golden Gate Estates. – Fire researchers say that even 30 feet of defensible space around a home can greatly decrease the probability of structure damage or loss due to a wildfire – a constant danger during Florida’s dry season. Florida Agriculture and Consumer Services Commissioner Charles H. Bronson urges state residents to take action and points to three problem areas that can be corrected inexpensively:
• Roof and gutters: Remove all dead leaves, pine needles, small twigs and palm fronds – anything that can ignite easily by falling embers.
• Sides of the home: Remove dead vegetation and combustibles such as firewood piles.
• Area within 30 feet of the home: Remove dead vegetation, keep grass cut and watered, remove any vines stretching from wild land to the home or into trees, and prune dead limbs from trees and bushes.
For more "Firewise" tips, visit the Florida Division of Forestry web site at http://www.fl-dof.com

HOUSING AID

Democrats and Republicans banded together yesterday to push a home loan rescue plan through the Senate Banking Committee on a 19-2 vote, boosting the bill’s chances for a broad election-year housing aid package.

FLOOD INSURANCE

Federal Emergency Management Administration has revamped its 20 percent premium discount rule for flood insurance, which will impact some Florida communities. The new rule stipulates that homes with first-floor living space that is one foot or more below FEMA’s base flood elevation are ineligible for the discount.

HOMEOWNERS INSURANCE

Many homebuyers want a property insurer they can trust, and that usually means a name they’ve heard before, such as State Farm or Allstate. But according to the Florida Office of Insurance Regulation, small companies offer equivalent coverage and, on average, are just as reliable as the big ones. And you may find the premiums significantly less than the well known named companies. Sometimes you pay for the brand more than the actually product or service.

HOUSING AID

The U.S. Senate Banking Committee is expected to approve a bipartisan homeowner rescue bill today that could help a half-million struggling borrowers get Federal Housing Administration – backed mortgages. However, it’s not clear whether President Bush will sign the agreement.

FANNIE MAE

Fannie Mae’s decision to allow 5 percent downpayments in declining markets, such as many areas in Florida, will "help encourage buyers to come back into the housing market," according to National Association of REALTORS’ President Dick Gaylord. NAR Chief Economist Lawrence Yun went even further: "The Fannie Mae decision is huge and will have a positive impact, perhaps significantly, on the housing market," he says. "We are very appreciative to Fannie Mae for listening to us and agreeing." NAR and other organizations have been calling on both Fannie Mae and Freddie Mac to change the declining market downpayment policy, which disproportionately affects minorities and lower income families, as well as first-time homebuyers. "We heard the concerns of NAR and we reviewed and determined that changes in our policy were needed," Gwen MuseEvans, Fannie Mae vice president for credit policy and controls. 

HOMEOWNERS INSURANCE

The surcharge Floridians pay to the Florida Hurricane Catastrophe Fund through their insurance policies is not enough, according to officials, and the state’s catastrophe fund needs more money to pay claims from past hurricanes.

INTERNATIONAL

Many international homebuyers consider this the perfect time to buy a South Florida condo and wait out the housing slump, because they think the region remains a powerful long-term draw. Figures suggest that activity is picking up as prices fall, and it could get even busier, analysts say.

International homebuyers should learn about how real estate is transacted, what the responsibilities of the real estate agent are, as well as, difference between a real estate agent and a REALTOR. The time spent discussing the aforementioned aspects will lead to a better purchase and a smooth easy real estate transaction.

ECONOMY

First the good news: The worst of the painful housing slump and the credit crunch may come to an end this year, according to the National Association for Business Economics. Now the bad: NABE also says the U.S. economy will weaken further and unemployment will rise; but a recession, if there is one, will be short and shallow.  

MORTGAGE RATES

Rates on 30-year mortgages edged down this week to their lowest point in a month, 6.01 percent, a spot of welcome news to would-be home buyers.

HOUSING STARTS

Construction of new homes in the U.S. posted the biggest increase in more than two years in April, rising by 8.2 percent. The unexpected strength came from a huge increase in apartment construction.

REAL ESTATE FORECAST

Home sales and prices throughout most of the U.S. are set to improve in the second half of 2008 and the recovery will vary by market, according to NAR Chief Economist Lawrence Yun. He blamed most of the housing market softness on the "subprime mess."

HOUSING AID

U.S. Sen. Christopher J. Dodd, (D-Conn.), chairman of the Senate Banking Committee, postponed action until next week on a housing aid package that could help half a million struggling borrowers get FHA-backed mortgages. But he says that negotiators within the Senate are close to a bipartisan deal.

MORTGAGE QUALIFICATION TO GET EASIER

Fannie Mae says it is doing away with higher downpayment requirements for borrowers in distressed real estate markets. The government-sponsored mortgage financier said Friday it will require downpayments of between 3 percent and 5 percent for all loans that it guarantees. That replaces a December policy requiring a higher downpayment if the loan was for a home in a market with declining real estate prices. Washington-based Fannie says the move is part of its effort to help resuscitate the flagging mortgage market.

Source: Associated Press