Good Advice from Eric Trailer

Per Eric Trailer:

Call him for your loan, he is exceptional!

"I received over a half-dozen phone calls or emails on Wednesday asking, “What will happen to mortgages now that Fannie and Freddie have been delisted from the New York Stock Exchange?” And the answer is, “While it’s rarely good news when any company gets “pink sheeted”, the handwriting was on the wall since the stock price was treading below $1.00 since the beginning of May. Since you and I (and every other taxpayer) own Fannie and Freddie, and since they represent the secondary mortgage market, they’re not going anywhere and loans in process as well as future loans will continue to fund...”



Builders continue to be pessimistic, according to the latest sentiment index coming in at 17 (a reading below 50 indicates poor sentiment), and they are warning that we may actually experience a housing shortage due to reduced housing supply. This is a bit tough to buy into, especially given last month’s report from Barclays on shadow inventory peaking this summer. But it does provide them a great excuse to ask the government/taxpayers for relief.



The CA tax credit for home purchases now has over 115,220 applications, representing over $136,000,000, but the state continues to encourage first-time homebuyers to submit applications since they only count 57% of the funds requested… The New Home Credit, however, has only 5,630 applications and reservations requested, representing only $51,0000,000— about half of the funding allowance.

If you or your clients are worried about the deadline on the Federal Tax Credit.., it’s likely that an extension will be granted.



Good news on the appraisal front is that I received word from a credible source that CAR will be sponsoring a bill that will eliminate the allowance of property tax stamps to be placed on the back of the deed. While this may be a sensitive privacy issue, the fact is that every hidden sale compromises an appraiser’s ability to make a proper value determination on a given comparable property, which is about the last thing that we need in a recovering market where comparable sales are tough enough to come by."