Sunday, October 13, 2013

Monday October 14 Housing and Economic stories


Union tangles with big farm after 20-year absence - (www.cnbc.com) The Gerawan family has been farming in California's Central Valley for more than 60 years, expanding to become the nation's largest peach producer. Dan Gerawan hires thousands of farm workers every year, and prices have been good. But now he's dealing with a blast from the past that is sending ripples across the Golden State's agricultural community like a Steinbeck novel, except with more lawyers. Over two decades ago, in 1990, the United Farm Workers organized laborers working for Gerawan Farming and, after legal skirmishes, the UFW was certified to represent those workers in 1992. Contract negotiations began. There was one meeting. And then…nothing. The UFW never came back, there was never any contract, and Gerawan Farming went back to business. Until now. Last year, the UFW returned. "We have nothing but chaos since," said Dan Gerawan. He received a letter from the union in October stating it was ready to negotiate a new contract. "I had to read the letter twice to believe it." Gerawan said his farm pays higher wages than the competition, and his operation even provides some benefits. "Our employees like that, and that's why they work here," he said. However, his lawyers told him that since workers never decertified the union, he had to negotiate with the UFW. Unlike the early '90s, the UFW is now able to take advantage of newer laws in California that force both sides to accept a contract through mandated arbitration by the California Agricultural Labor Relations Board. Gerawan said once arbitration began, the union "proposed wage increases that were ridiculous." He fears the ALRB will side with the union, and the arbitrator's decision is final.

Obamcare sign up delayed for small business exchanges until November 1 - (www.cnbc.com) The Obama administration will delay online Obamacare enrollment for small businesses in federally operated healthcare exchanges until Nov. 1, marking a one-month delay in the roll-out, an administration official said on Thursday. The official, who spoke on the condition of anonymity, said that small businesses that want to purchase healthcare coverage for their employers would still be able to enroll beginning Oct. 1 through paper applications, in-person meetings or over the phone to a federal call center. The Affordable Care Act, more commonly known as Obamacare, mostly kicks in Oct. 1, with major implications for the way people are insured. Businesses have been pushing for a delay in the rules, though. 

FHA, Facing Losses, Likely to Tap Treasury - (online.wsj.com) The Federal Housing Administration, which emerged as a major backstop of the U.S. residential-mortgage market throughout the housing downturn, is likely to require an infusion from the U.S. Treasury at the end of the month, according to people familiar with the matter. Officials haven't determined exactly how much money the FHA will need, these people said, but early projections have suggested the agency could require at least $1 billion. In April, White House budget officials had projected an agency shortfall of $943 million for the current fiscal year, but housing officials said at the time they would wait until Sept. 30 to determine whether they would need to tap the Treasury. The FHA's main mortgage program hasn't required taxpayer support in its 79-year history. The agency doesn't have to ask Congress for money because it has what is known as "permanent and indefinite" budget authority, allowing it to tap the Treasury.

Brits to take on "land hoarders" - (www.theguardian.com) Could an Ed Miliband-led Labour government deliver on homes? Polls say 80% of people say the country faces a housing crisis and on Tuesday the Labour leader pointed to the 9m who are renting and for whom the dream of home ownership remains just that. Labour's policy solution is to set an ambitious target of building 200,000 homes a year, twice the current rate. To accelerate this, Miliband has three big ideas, which will be examined by a new rebuilding Britain commission headed by former BBC Trust chair Sir Michael Lyons. First, Labour would target the shadowy world of land hoarders, often hedge funds and investors who have no intention of building homes but instead use the acreage as an asset. "Either use the land or lose the land," warned the Labour leader. This is a particularly big issue in London. Roger Harding, head of policy at Shelter, said: "The Greater London Authority estimated 50% of the land with planning permission was owned by someone other than developers. You have hedge funds and banks here".

Citigroup Laying Off 1000 Loansters. Mostly in Las Vegas. Party is Over - (finance.yahoo.com) Citigroup Inc. said it is eliminating about 1,000 jobs in its U.S. home mortgage business, making it the latest bank to lay off staff as higher interest rates cut into demand for new loans and refinancing. The bank is cutting about 8 percent of the 13,000 jobs in its mortgage division, with most of the cuts - about 760 - taking place in Las Vegas. Banks including Wells Fargo & Co, JPMorgan Chase & Co and Bank of America have announced thousands of layoffs in their home lending units in recent weeks. With mortgage rates having risen to their highest in two years, applications to refinance home loans plunged in early September to their lowest in nearly four years.







No comments: