Sunday, September 15, 2013

Monday September 16 Housing and Economic stories


California program assists homeowners with downpayments - (www.housingwire.com)  The California Housing Finance Agency launched a new fixed-rate mortgage program for low and moderate income, first-time homebuyers. The program will provide thousands of dollars in downpayment assistance, the agency said in a statement. CalPLUS is an FHA-insured, 30-year fixed mortgage that includes a special zero interest junior loan for as much as 3.5% of the first mortgage loan amount to assist borrowers needing funds for a downpayment. Additionally, the Zero Interest Program downpayment loan does not have to be repaid until the home is sold, refinanced or paid in full. "Since its inception, CalHFA has focused on helping Californians become homeowners, strengthening communities and neighborhoods," said Claudia Cappio, executive director of CalHFA. “Downpayments continue to be one of today’s biggest obstacles for first-time homebuyers. This new program is aimed at bridging that gap for California families."

Rupee's collapse confounds India Inc. - (www.cnbc.com) Companies such as Whirlpool of India say they can't plan more than a couple of months ahead as a fast-falling rupee drives up the cost of imports, forcing them to raise prices even while consumer spending crumbles. The timing is particularly tough for consumer companies that were counting on India's September-to-December holiday season to spur sales. Shoppers, who helped see the country through the global financial crisis in 2008, are closing their wallets, squeezing companies that make everything from automakers to shampoo. Those that import finished goods or raw materials are the worst hit as they scramble to hold onto margins and balance the need to raise prices without deterring buyers. "We are now planning for a month or three months at best, unlike six months or a year," said Shantanu Dasgupta, vice president for corporate affairs and strategy at Whirlpool of India, a division of Whirlpool, the world's largest maker of home appliances.

Officials: Controversial auto loan program revived - (www.cnbc.com) Senior officials from the Department of Energy have signaled the Obama administration is ready to restart a controversial automotive loan program designed to kick-start the development of alternative vehicles. The program was effectively put on hold two years ago after several problems, and the halt in funding was blamed for the failure of several potentially promising recipients—while critics faulted poor oversight for the loss of money loaned to several other start-ups. A total of $15 billion, or 60 percent of the original $25 billion set aside for the Advanced Technology Vehicle Manufacturing program is still set aside and there is no official end date the administration has to meet. But proponents point to the need to rush new technologies to market to meet upcoming increases in fuel economy standards—and they point to California start-up Tesla Motors as a successful example of what the ATVM program was meant to achieve.

Russia orders oil supply cut to Belarus - (www.reuters.com) Russia's state pipeline monopoly Transneft has ordered a cut in oil supplies to Belarus by 400,000 tonnes, or nearly one-quarter of previously planned deliveries for September, the firm and trading sources said on Wednesday. Transneft cited environmental concerns as it said it needed to replace 700 km (440 miles) of old pipelines. "We have to speed up work as it is ecologically dangerous," vice-president Mikhail Barkov said. Oil traders said the order was completely unexpected. It followed Belarus's arrest this week of the head of Russia's Uralkali , the world's top potash producer, in a row over the collapse of a sales alliance that has triggered a diplomatic spat with Moscow. "It looks like we are heading for a new trade war again," one trader said.

McMansions are back and bigger than ever – (www.money.msn.com) Reports of the death of the McMansion have apparently been greatly exaggerated. Oversize suburban homes were subject to a backlashduring the recession, when some consumers snubbed them in search of smaller homes that were more energy-efficient and within walkable distances to towns. Homebuilders responded by shrinking the footprints of newly constructed houses for at least three years following the real estate crash, according to U.S. Census Data. But the supersize home is making a comeback as the average reached a record 2,642 square feet in the second quarter, The Wall Street Journal reports, citing data from the Commerce Department. That means new homes have actually surpassed the record 2,561 square feet reached in early 2009. 






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