KeNo's Housing and Economic Portal: Sunday January 2 Housing and Economic stories

Saturday, January 1, 2011

Sunday January 2 Housing and Economic stories

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TOP STORIES:

US house prices continue to plummet - (www.centralvalleybusinesstimes.com) Home prices in the U.S. declined for the third month in a row in October, according to real estate information company CoreLogic (NYSE: CLGX) of Santa Ana. National home prices, including distressed sales, declined by 3.93 percent in October 2010 compared to October 2009 and declined by 2.43 percent in September 2010 compared to September 2009. Excluding distressed sales, year-over-year prices declined by 1.5 percent in October 2010 compared to October 2009. "We are continuing to see the weakness in home prices without artificial government support in the form of tax credits. The stubborn unemployment levels and seasonality are also coming into play," says Mark Fleming, chief economist for CoreLogic. "When you combine these factors with high shadow and visible inventories, the prospect for a housing recovery in early 2011 is fading." Prices dropped even more in most Central Valley markets tracked by CoreLogic for the report -- but not everywhere. In its words (HPI is its “home price index”):

Banks Push Fed to Curb Borrowers' Right to Rescind Mortgages - (www.bloomberg.com) Mortgage firms are pressing the Federal Reserve to curb homeowners’ right to invalidate loans based on flawed documents -- a right consumer groups say is one of the few weapons borrowers have to battle unfair lending. Consumer groups and industry lawyers say a rule under consideration by the central bank would make it harder for borrowers to exercise their right of “rescission,” which forces a lender to relinquish a lien on a mortgaged property. They said the number of rescissions has grown in recent years as a result of the foreclosure crisis and allegations that mortgage documents were fabricated or processed improperly. Ken Markison, regulatory counsel at the Mortgage Bankers Association, said the change would save lenders money. “Greater clarity will help avoid unnecessary litigation and reduce costs,” Markison said.

Florida: Miami Mayor Faces Recall - (www.nytimes.com) Mayor Carlos Alvarez of Miami-Dade County faces a recall after opponents gathered enough signatures to force an election. The drive came after the county raised the property-tax rate to balance its budget. The county commission must call an election in 45 to 90 days, Harvey Ruvin, clerk of courts, said Tuesday. Recalls are also being sought in Chattanooga, Tenn., and Omaha after proposed tax increases. Please check out the Recall Mayor Alvarez initiative. Under Mayor Alvarez’s watch, Miami-Dade’s unemployment rate rose to 14.4 percent – almost 5 percent higher than the national average. At the same time, the Mayor’s proposed budget calls for “hiking property tax rates 14 percent.” Voters need to regain control. Mayor Alvarez needs to be RECALLED!

Mayor Alvarez May Challenge Recall Effort - (www.miami.cbslocal.com) The math for Miami-Dade Mayor Carlos Alvarez is stark. A recall effort aimed at him has certified nearly twice the number of voter petition signatures needed to force a countywide recall election by next spring. Alvarez said Wednesday, “I believe the voters have a right to vote on this issue. However I will not give up my right to challenge something that is wrong.” He says his legal team has found discrepancies with notary stamps and signatures but concedes it is not likely enough to derail a recall election. At the heart of that effort, organized by auto tycoon Norman Braman, is anger over the property tax rate hike recommended by Alvarez, and approved by county commissioners three months ago. Alvarez defended his position. He said Wednesday, “I have preserved the fire department, number one, the police department, number two, the parks department and social services. If people are upset because some of them got tax notices and their taxes went up slightly so be it. But at the end of the day I have to live with myself.”

Dems end lame duck session after failure to pass union contracts - (www.host.madison.com) Democratic Gov. Jim Doyle's administration announced last week it had completed negotiations on 17 contracts covering 39,000 state workers ranging from teachers to janitors. The deals included no pay increases, factored in 16 furlough days Doyle ordered state employees to take in the current state budget and called for 5 percent increases in health care contributions. The contracts have been a hot issue for Walker. He demanded Doyle's staff stop work on the agreements last month, saying they could hamstring him as he grapples with a $150 million deficit in the current fiscal year and a $3.3 billion shortfall in the next two-year budget. He wants state workers to make deeper concessions and even suggested he would consider abolishing state employee unions after he takes office. Democrats pushed on despite Walker's demands, saying he's not the governor yet. But no one realized that former Senate Majority Leader Russ Decker, D-Weston, wasn't on board.