Monday, June 3, 2013

Tuesday June 4 Housing and Economic stories


TOP STORIES:

Taxing Vacant Property - (www.project-syndicate.org) Governments can help this adjustment process through the mechanism of a vacant property tax. The logic is simple, property that is vacant for a substantial period of time (e.g. 3-6 months) will face an additional tax (e.g. 1.0 percent of assessed value) in addition to whatever normal tax the property would face. The tax would give owners of vacant land, houses, and businesses a strong incentive to lower prices in order to have the property used. The administration of the tax should be straightforward. In almost all cases property will already have an assessed value on public records, so this will require no new work from the tax authorities. In the case of commercial or rental property, property owners will have to show an income from the property or pay the tax. If they choose to lie about a vacancy, they will end up paying tax on income they are not receiving. In the case of purely residential property, for example a homeowner who has moved or a developer who is holding out for a high price, property owners may lie about the status, but the risk of detection should cause many to pay the tax. (Part-year vacancies may have the delicious result that German property owners will have to pay a substantial tax on summer homes in Greece or Spain.) An almost inescapable outcome is that the government will collect additional revenue and reduce vacancies, putting downward pressure on property prices and rents.

unconstitutional foreclosure?  - (www.denverpost.com) A federal judge Tuesday formally stopped the foreclosure auction of an Aurora woman's house, leaving unanswered whether he can determine whether a part of Colorado's foreclosure laws is unconstitutional. While U.S. District Judge William J. Martínez's order enjoins U.S. Bank, the trustee on Lisa Kay Brumfiel's mortgage, from seeking a public-trustee foreclosure, it doesn't stop the bank from pursuing her house the old-fashioned way — via a lawsuit in state court. The bank conceded to the injunction late Monday because, lawyers said in a court filing, it had already closed the foreclosure case it filed against Brumfiel with the Arapahoe County public trustee's office more than 18 months ago. Additionally, the bank said it has requested a state judge to rescind his order to sell the house. Although U.S. Bank said it would never again seek a public-trustee foreclosure against Brumfiel's house — essentially rendering her federal lawsuit moot — Martínez did not dismiss her complaint outright, because the state judge hasn't ruled yet.

Coeure Says ECB Looking at Options to Boost Lending - (www.bloomberg.com) European Central Bank Executive Board member Benoit Coeure said while the ECB is looking at options to spur lending to smaller companies it shouldn’t artificially change risk premiums paid by such firms. “The ECB is today exploring options to further strengthen lending to the real economy and, in particular, to small and medium-sized enterprises,” Coeure said in a speech in Orleans,France, today. At the same time, “seeking to artificially eliminate differences in financing costs arising from different risk environment or from insufficient capital would amount to substituting actions not taken by other actors,” he said. The Frankfurt-based central bank on May 2 cut its benchmark interest rate to a record low of 0.5 percent and President Mario Draghi said the ECB is exploring options to rekindle the market for asset-backed securities to support lending to smaller companies. Still, policy makers are “far from reaching any conclusion,” he said.

BOJ may seek ways to calm bond yields, policy on hold - (www.reuters.com) The Bank of Japan is expected to stand pat on monetary policy next week despite jitters over the recent jump in bond yields, hoping it can stem the volatility by fine-tuning market operations. The central bank may front-load bond purchases or offer funds via market operations more frequently if the bond market turbulence persists, which are technical steps that can be taken by its bureaucrats without approval by the nine-member board. It is expected to hold off on easing policy through further increases in asset purchases, having already pledged in April to double its bond holdings in two years to expand the supply of money at an annual pace of 60 trillion ($588 billion) to 70 trillion yen. The recent bond selloff, which sent the 10-year yield to a one-year high of 0.92 percent on Wednesday, has highlighted the dilemma the central bank faces as it attempts to generate inflation in a country mired in price falls for 15 years.

JPMChase Refuses Home Loan To Former Soft-Core Porn Producer Citing "Moral Objections" - (www.mfi-miami.com) In rejecting plaintiff’s application, JPMorgan asserted that its superior moral position prevented it from loaning plaintiff money because one of plaintiff’s sources of income did not meet JPMorgan’s ‘morality standards’ and that the ‘reputational risk’ of loaning plaintiff money threatened JPMorgan’s public image. JPMorgan’s hypocrisy would be laughable except plaintiff was in fact illegally discriminated against and denied a loan by JPMorgan.” -Complaint in Greenberg v JPMorgan Chase. Marc L. Greenberg, the producer behind late-night Cinemax soft-core porn classics like “Co-Ed Confidential” and “The Best Sex Ever,”  and made for TV classics like “Deviant Co-Eds” is suing JPMorgan Chase in Los Angeles Superior Court claiming lending discrimination.





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