June 28, 2016

A Seemingly Obvious Omission

The Calgary Herald reports from Canada. “The benchmark price on single-family homes in the city last month was $500,500, easing three per cent from $518,000 during the same time in 2015, says the Calgary Real Estate Board. Quick possession home buyers turning to Calgary’s northwest saw prices dip by more than $20,000 last month compared to the same period a year earlier, says Canada Mortgage and Housing Corp. The quadrant had 90 constructed but unabsorbed single-family homes, which was the most of any quadrant in the city. This statistic typically reflects the spec and show home segment. The average price on these homes in northwest Calgary was $640,951, which is down year over year from $667,423.”

“On the resale market, the most substantial setback in pricing for single-family homes came from an area that the Calgary Real Estate Board has identified as the city centre. Its benchmark price was $648,800, which is a five per cent dip year over year, says CREB.”

The Saskatoon Star Phoenix. “The market for cabins on popular lakes north of Saskatoon is ‘not especially strong,’ but price erosion caused by weak energy and commodity prices appears to be at an end, according to a local real estate agent. ‘I think it’s a little less reactive to the (economic) situation,’ said Matt Miller, an associate broker with Royal LePage Saskatoon. ‘Inventories have come up, prices have softened a little bit, but we aren’t seeing a dramatic change.’”

“Cabins in Melfort went to residents of nearby communities, while ‘financially secure millennials’ dominated the market in the Regina region. Cabins in Saskatchewan cross the price spectrum but are generally accessible only to people who can afford two properties. Miller said that means there is less pressure to sell quickly, which has contributed to higher inventories and softening prices.”

CTV News Vancouver. “B.C. Premier Christy Clark is addressing the issue of housing affordability in Metro Vancouver, appearing in a YouTube video promising the province is taking action to ease the Lower Mainland’s housing crisis. Economist Tom Davidoff called the principles a good start, but he joins the chorus of critics that say they’re baffled by a seemingly obvious omission – foreign ownership.”

“‘The most important [issue to be addressed] is the critical role of money coming in from overseas,’ said Davidoff. ‘People who don’t pay taxes here driving up real estate prices for those who do.’”

“The video includes no mention of foreign ownership, a factor that analysts and economists alike say plays a role in pricing out local families. A recent study found some 10,800 homes, many of them condos, sit empty in Vancouver. ‘How do we get control of the international money in our housing market that’s distorting prices so badly?’ NDP housing critic David Eby told CTV News. ‘It’s one thing to say you’re going to increase supply… but we have record housing starts in Metro Vancouver, and housing has never been less affordable.’”

From CBC News. “A major Chinese bank has obtained a court order in B.C. freezing the assets of a businessman accused of fleeing China and buying ‘luxury’ Lower Mainland homes after defaulting on a $10 million loan. In an application brought before a B.C. Supreme Court judge last week, lawyers for China CITIC Bank claim Shibiao Yan and his wife bought more than $8 million worth of properties in Surrey and Vancouver over a three-month period beginning in June 2014.”

“The court documents claim Yan, who was president of the Tanyuan Wood Company in Shijiazhuang, China, withdrew RMB 50 million from a line of credit he obtained on behalf of his company. The bank claims the 56-year-old provided a personal guarantee for the money. The loan came due last summer. But the bank claims Yan and his family had already fled to the Vancouver area. Yan could not be reached for comment. He was not represented at the ex parte hearing and none of the allegations against him have been proven in court.”

“Last year, Canada’s anti-money laundering watchdog FINTRAC claimed to have stepped up enforcement activities in Vancouver’s real estate market. A report prepared for the agency suggested the real estate sector was at ’significant risk’ for money laundering.”

“According to the court documents, Yan incorporated a company in B.C. called TYMY Investments in March 2014, and his 36-year-old wife paid $2.5 million for a house in Vancouver a month later. The bank claims Yan applied for the loan in June 2014, but did not reveal that he had a residence or any interests outside of China. He was allegedly given a line of credit in June 2014 and withdrew the entire amount within days. The documents claim Yan bought three homes in Surrey in the next three months, one worth $1 million, one worth $3.1 million and one worth $2.3 million.”

The National Post. “The planned auction for a Victoria mansion was scrubbed Wednesday evening after only one bidder showed up. But that bidder — a local resident — may end up owning the 7,200-square-foot heritage house. Negotiations were taking place. ‘We are going to work with that bidder privately,’ said real estate agent Andy Stephenson of Sotheby’s International Realty Canada.”

“Stephenson was optimistic about the eventual sale price, speculating it would be about $2 million. The 5 p.m. auction followed two weeks of open houses at the Samuel Maclure-designed house. The listing price for the property was $1.998 million. The minimum reserve bid was not disclosed. Stephenson had hoped that a number of bidders would be attracted to the auction, a marketing method that’s rare in Greater Victoria.”

“Stephenson estimated that about 2,000 people viewed the six-bedroom house during the open houses. There have been 2,600 hits on the video of the house posted on Sotheby’s website, he said. About 60 people showed up at the house to watch the auction play out in the 32-foot-long ballroom. Many were Rockland residents and real estate agents. Stephenson said he thinks other sellers might want to stage auctions in the future. ‘I think there are a lot of people in this room that are probably thinking about it with their own homes,’ he said.”

“The auction idea was launched at a time when Greater Victoria’s real estate market is repeatedly setting monthly sale and price records.”

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Comment by Ben Jones
2016-06-28 02:16:39

‘An Alberta couple have filed a lawsuit after buying a Langley home for $3 million and discovering there was a marijuana grow-op on the property. Yuling Fu and Hongxing Jiang say that it was only after they bought the three-bedroom home on an acreage in May that they learned of the grow-op.’

‘They say that mortgagees on the property at 2768 208 St., as well as the realtor who had conduct of the sale, were aware of the grow-op and took steps to conceal that fact from them.’

“In the circumstances, the act of concealment of the illegal marijuana grow operation and the steps taken by the defendants constituted misrepresentation,” says the couple’s suit filed in B.C. Supreme Court in Vancouver. “The misrepresentation was made to induce prospective purchasers, including the plaintiffs, to purchase the property.”

‘The mortgagees, identified as Terry Lessard and Cindy Lessard of Coquitlam, are named as defendants in the suit along with realtor Paul Quinn and his employer, Re/Max Colonial Pacific Realty Ltd.’

‘ In an interview, Quinn denied the allegations, calling them “preposterous.” Quinn, who has been in the real estate business for 35 years, said that all of the prospective buyers of the home were made aware that there had been a legal medicinal-marijuana grow-op on the property, which had a listing price of $1,495,000.’

“It was furthermore very, very difficult to hide the fact that it reeked of skunk weed, within 1,000 feet of the property. The fresh stench of skunk.”

‘He said that there were four bids that went to the court for approval in May, with the plaintiff’s offering by far the highest bid. The next-highest bid was $1,853,000, he said.’

‘Quinn said that the buyers were lured by the prospect of earning $13,000 in monthly rental income and that when the plaintiffs learned they had overbid, they wanted out. “They completely realized, ‘Oh my God, what did we do?’ ”

Comment by The Selfish Hoarder
2016-06-29 07:22:34

And their problem is…?

They could make money on that stuff…maybe they got a bargain.

Suppose I bought a house in Temecula and then found by golly there is an avocado orchard! Would I have grounds to sue on accidentally buying a money maker?

Comment by Ben Jones
2016-06-28 02:34:46

‘It’s one thing to say you’re going to increase supply… but we have record housing starts in Metro Vancouver, and housing has never been less affordable.’

‘A major Chinese bank has obtained a court order in B.C. freezing the assets of a businessman accused of fleeing China and buying ‘luxury’ Lower Mainland homes after defaulting on a $10 million loan. In an application brought before a B.C. Supreme Court judge last week, lawyers for China CITIC Bank claim Shibiao Yan and his wife bought more than $8 million worth of properties in Surrey and Vancouver over a three-month period beginning in June 2014.’

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Comment by Ben Jones
2016-06-28 02:35:39

‘Housing prices in Newfoundland and Labrador are expected to drop by 8 per cent in 2016 according to the latest forecast from the Canadian Real Estate Association. Beth Crosbie is a realtor and former President of association. She says it’s a buyer’s market. She says there’s always a winner and loser in housing, and right now it’s looking good for buyers.’

‘The housing market in the province had risen to a peak in 2014, but oil price volatility and a stagnant economy have caused a sharp drop in prices. Crosbie says people will be upset to learn their houses are not worth what they once were.’

‘She says when you buy a house it’s your shelter and to see a high value on paper but a low return after selling is troubling for homeowners.’

Comment by Cynical Cynosure
2016-06-28 10:32:06

8% drop. That’s the forecast by the RE association.

Which means it’s going to be a lot higher.

They’re leveraged. They’re wiped out. And Canada is recourse.

Comment by Ben Jones
2016-06-28 02:38:28

Opinion Column
Real estate agents need to fix their industry

Pity poor real estate agents.

Lately their popularity as a group has sunk so low that even the dentist who killed Cecil the lion has sent them a “get well soon” card.

Facebook and the #VanRE hashtag are home to savage comments about real estate agents and their ethics in the wake of our housing affordability crisis. A slew of excellent journalists have detailed such shady practices as “shadow flipping,” plus the cozy arrangements certain agents have with developers when it comes to first dibs on presales — leaving those people who camp out for days at a development wondering what happened to all the choice units.

I bring this up because I’ve been hanging with these folks a lot during the past few months.

Three years ago, I tried to sell my condo. Despite months of open houses and showings and ads and fancy brochures, just a single — and insulting — offer was presented before my partner at the time and I took it off the market. It was as though the place was radioactive.

A few weeks ago, we tried again. This time, the agent put it on MLS, scheduled a few showings and in barely a week it had multiple offers and sold for above the asking price. Dude didn’t do anything else but field a couple of calls and he scooped up a nice commission.

That’s how crazy this market is. Agents with listings barely have to do anything and the place will land multiple offers — sometimes as many as 10.

Contrast that with my efforts to buy a new place. The agent helping us is frazzled trying to get our offers noticed buried in with an avalanche of other offers.

It’s so competitive that during one offer we were suddenly informed that the dishwasher and stove were both broken, and not only would the owner not be fixing them, they would not be reducing their price. Oh, and don’t even dare asking for an inspection — as columnist Ada Slivinski wrote in this space last week, “subjects” are laughed out of the room. Take it or leave it.

Some agents aren’t even putting any effort into sales. I’ve seen photos on ads that make condos look like Al Capone’s cell at Alcatraz, as well as loads of inaccurate information, from wrong sizes of rooms to mistakes about parking spaces and storage areas. At least pretend you are trying.

And during open houses, some people aren’t even bothering to clean up their homes. The places are filthy. And why not? They’ll still get seven offers over asking.

But don’t you dare criticize the agents. They are a defensive lot. I heard a lot of whining from them at open houses about how unfair people treat them because of accurate news stories detailing the ethical breaches of other agents.

Well, I have some advice for you aggrieved agents. If you are one of the good ones who really cares about your industry’s reputation, do something about it. Get together with other agents and demand that your governing bodies do more to crack down on offenders — with real penalties.

I’ll start holding my breath now.

Comment by Karen
2016-06-28 08:40:43

It’s so competitive that during one offer we were suddenly informed that the dishwasher and stove were both broken, and not only would the owner not be fixing them, they would not be reducing their price. Oh, and don’t even dare asking for an inspection — as columnist Ada Slivinski wrote in this space last week, “subjects” are laughed out of the room. Take it or leave it.

I heard the same thing recently from a friend in Utica-Rome area of New York. Go ahead and Google it.

An ex-employer who travelled frequently referred the the area between Syracuse and Albany as ‘the land that time forgot’.

But people are able to sell houses with no inspection now because the market’s so ‘hot’.

Comment by Captain Lou Albano
2016-06-28 08:53:43

Now that’s stunning.

You gotta wonder just how deep does all the fraud go?

Comment by Cynical Cynosure
2016-06-28 10:34:26

Driving through upstate New York is a revelation in how gutted the industrial belt actually is.

It’s basically rural Mississippi with gorgeous vistas and plenty of water.

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Comment by dandroidz
2016-06-28 10:53:09

And a lot of rich folks lake houses artificially propping up the local economy. Marine fuel for jet skis and boats and coffee shops.

Comment by taxpayers
2016-06-28 10:56:12

A Carter era economist said ups ate ny w wild boom because they have water

Comment by Anonymous
2016-06-28 10:56:52

I’m sitting here wondering who the hell would buy a house without an inspection by a reputable, independent inspector?! Maybe THIS is a sign we are truly in another housing bubble!

Comment by azdude
2016-06-28 11:07:28

desperate debt donks?

Comment by Captain Lou Albano
2016-06-28 11:40:57

There many donks. Millions of them. But there is only one Donk Craterton.

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Comment by cassis
2016-06-28 14:53:46

If someone is set on buying in Boston (where I live), you need to bid without any contingencies or lose the property to someone who will.

Comment by Ben Jones
2016-06-28 02:44:13

‘A businessman who posed as a “man of God,” when he lured his victims to invest in a $1.1-million fraud scheme was sentenced to four years in prison Friday for fraud and money laundering.’

‘Don Van Bodegom, 54, who, court heard, left 20 victims from across Ontario “devastated” after taking their life savings showed no emotion as a police officer snapped on handcuffs and led him off to prison. He was also ordered to pay back the money within five years of his release from prison or he could be sent back to prison for another five years.’

‘Court heard that Van Bodegom posed as a religious man and even lured some victims at a prayer group he ran in 2009. He told victims he was a mortgage agent, a mortgage broker, a consultant, a builder and a merchant banker, although he holds no licence and only has a Grade 10 education. He owned about a dozen businesses in the Barrie area, including New Day Building Group, The Mortgage Station, Custom Home Builder, VB Financial and several numbered companies, some of which were just mailbox addresses used to conceal assets, court heard.’

‘He promised them huge returns for investing in a residential housing project in South Hampton, Ont. A second project involved the renovation and resale of the Hillside Park Retirement Home in Hamilton, Ont. But instead he took their life savings to build a luxury home with an indoor swimming pool, snowmobiles and vehicles, court heard.’

‘One Windsor police officer who lost $150,000 described Van Bodegom as “a wolf in sheep’s clothing.” Another victim said “he has no conscience, yet he continues to manipulate victims.”

‘Sitting quietly at the back of the court, a husband and wife who never went to police but claim they were bilked of $200,000 at a time when they were vulnerable and grieving over the death of their child about 15 years ago said they came to watch justice. “They say fraud is not a violent crime, but it’s as insidious, and leaves you scarred to the core,” said the woman as she held hands with her husband outside of court. “There is no gun, but it’s just as traumatic. It devastates lives.”

“We hope this sentence will prevent him from hurting other people,” said victim Carol Braun, who lost $160,000 and was instrumental in alerting police.’

‘Outside of court several of Van Bodegom’s family members appeared enraged. “Don’t you dare put this in the newspaper, it’s all lies!” his wife and other family members yelled, prompting security staff to attend.’

‘Van Bodegom is likely to get parole in less than one year.’

Comment by The Selfish Hoarder
2016-06-29 07:27:56

The sheep who never read Moliere’s “Tartuffe” have to be scammed.

Comment by Apartment 401
2016-06-28 02:50:07

Denver going after “scourge of hoodlums” on 16th Street Mall:

“Citing a “scourge of hoodlums” on Denver’s 16th Street Mall, city officials on Monday announced new plans to ramp up security, including stopping people from leaning on walls and calling animal control when people are loitering with dogs.

The plan also includes the addition of more uniformed officers on the mall, from the Denver Police Department and from private security, which will be hired by the Denver Downtown Partnership.

Mayor Michael Hancock said the crackdown is coming because of bad behavior from “urban travelers,” whom he described as a scourge of hoodlums who are pushing the boundaries of the law. Others describe the urban travelers as primarily young people who travel between cities seeking a carefree lifestyle with no desire to hold jobs, mortgages or bank accounts.”


Comment by Combotechie
2016-06-28 04:50:08

“The travelers often arrive in Denver around April 20, in time for the annual marijuana celebration, and they stick around for the warmer months before moving down the road. Since 2014, there has been an increase in their numbers, said Denver police Cmdr. Tony Lopez, whose district includes downtown.”

Hamsterdam! These potheads all need to be somewhere so they might as well be where marijuana is celebrated.

What a shocker, no?

Comment by Apartment 401
2016-06-28 04:57:12

Come for the weed, stay for the heroin.

Comment by oxide
2016-06-28 05:04:00

And here I thought that CO would be rolling in MJ tax dough, only to find they are just spending that same tax dough on extra security.

Comment by taxpayers
2016-06-28 13:08:54

alot of the pot $ will go to rehab etc
big gov

add your legal limit of booze and try to drive- it’s impossible

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Comment by rms
2016-06-28 06:18:41

“…no desire to hold jobs, mortgages or bank accounts.”


Comment by dandroidz
2016-06-28 07:14:19

I was just about to key on that. Heaven forbid people perhaps live a barter system type lifestyle, cash only, and don’t vote.
Darnit they’re breaking the societal engineering efforts of Uncle Sammy!

Comment by oxide
2016-06-28 07:32:25

I don’t believe it was meant that way. “Jobs, mortgages, and bank accounts” is just code for not being a leeching drifter.

For example, Bill in LA rents, likes untraceable cash/gold/bitcoin, doesn’t vote, and is rich enough to not have a job. I don’t think he would bother the Denver police. Just don’t lean on any walls.

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Comment by dandroidz
2016-06-28 07:58:53

Yeah I sort of figured. On that note, there are stories of tech workers living the shanty life while making $100k. Granted that’s more a reflection on SF Bay Area housing,.

Comment by The Selfish Hoarder
2016-06-28 10:16:25

I don’t think he would bother the Denver police. Just don’t lean on any walls.

spot on.

I don’t confront gubment. I don’t challenge them. If I’m imprisoned I cannot actively persuade people to become voluntarists.

I am totally against civil disobedience. That is different from practicing disobedience where applicable though.

“If a law is unjust, a man is not only right to disobey it, he is obligated to do so.” - Thomas Jefferson

Comment by Anonymous
2016-06-28 11:05:20

Is badgering people for handouts a requirement of an off-grid type lifestyle? That sounds more like leeching.

BTW they’re also using/relying on the infrastructure built and maintained by those who do participate in the economy.

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Comment by AbsoluteBeginner
2016-06-28 07:45:34

What the hell is Denver’s problem?

Comment by Apartment 401
2016-06-28 07:52:47

Flyover homeless who can’t make it on the West Coast?

Comment by AbsoluteBeginner
2016-06-28 10:19:39

I love hiking in Colorado, but I know that I could never afford living there. So visiting there is about 70% satisfaction vs. maybe 30% satisfaction struggling with work and dreaming of owning an overpriced condo.

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Comment by In Colorado
2016-06-28 14:14:50

Just don’t live in Denver. Colo Springs is cheaper and if yo really want cheap go to Pueblo.

And if you want to live in Denver, do what Goon does: rent.

Comment by MacBeth
2016-06-28 07:53:20

Colorado = The Next California.

That should explain it.

Comment by dandroidz
2016-06-28 08:25:23

I just read geologists found freshwater deeeeeeeep underground in CA, only problem is extracting it could cause contamination and also cause the ground to sink in.

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Comment by Captain Lou Albano
2016-06-28 08:28:43

“cause the ground to sink in.”

That would be called a CRATER.

Comment by AbsoluteBeginner
2016-06-28 10:21:43

‘Colorado = The Next California.’

Don’t you mean more like the next Oregon or WA or some other arbitraged property leveraged location?

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Comment by In Colorado
2016-06-28 09:21:55

I was at the 16th street mall recently. I can’t say that the mix of bums hanging around was any worse than during the pre legalization years, which is to say it was the typical American large city downtown area (meaning I don’t care for it).

What was more interesting, IMO, was the shooting that happened one block away from the convention center, mid afternoon right on Speer Blvd; during Comic Con weekend.

Comment by GuillotineRenovator
2016-06-28 12:35:11

I visited Denver and stayed in a downtown hotel once in the late 90’s. I did not care for the city at all.

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Comment by taxpayers
2016-06-28 13:10:20

in the 80’s no one went downtown for anything,ever

Comment by Senior Housing Analyst
2016-06-28 03:05:16
Comment by Combotechie
2016-06-28 04:52:54

“According to Banfield, the program is structured as part of Freddie Mac’s Home Possible Advantage program that allows buyers to put 1% down and receive a 2% grant so they have a 3% equity to meet the 3% down loans.”

Comment by Combotechie
2016-06-28 05:10:09

Q. If a one-percent commitment on your part will get you into the house and if you make no other payments from then on then what happens?

A. Nothing happens; You still get to live in the house.

A foreclosure process - A PROCESS - may be initiated but the term process means just what it suggests it means which is something that is far removed from being an event - possibly several years removed from being an event. Possibly never becoming an event.

Comment by Captain Lou Albano
2016-06-28 05:43:45

Resulting in a failing moribund economy

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Comment by Combotechie
2016-06-28 05:46:30

This one-percent bet is a nifty one to make. If housing prices continue to go up then you make some payments. If prices go down then you don’t.

Since equity equals wealth the payments you make on your house if prices go up are something that the house can make on itself if things are managed correctly.

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Comment by Professor Bear
2016-06-28 06:22:34

Subprime is back!

After subprime collapse, nonbank lenders again dominate riskier mortgages
By James Rufus Koren
November 30, 2015

PennyMac, AmeriHome Mortgage and Stearns Lending have several things in common.

All are among the nation’s largest mortgage lenders — and none of them is a bank. They’re part of a growing class of alternative lenders that now extend more than 4 in 10 home loans.

All are headquartered in Southern California, the epicenter of the last decade’s subprime lending industry. And all are run by former executives of Countrywide Financial, the once-giant mortgage lender that made tens of billions of dollars in risky loans that contributed to the 2008 financial crisis.

This time, the executives say, will be different.

Unlike their subprime forebears, the firms maintain that they adhere to strict new lending standards to protect against mass defaults.

Still, some observers worry as housing markets heat up across the country and in Southern California, where prices are up by a third since 2012.

So-called nonbank lenders are again dominating a riskier corner of the housing market — this time, loans insured by the Federal Housing Administration, aimed at first-time and bad-credit buyers. Such lenders now control 64% of the market for FHA and similar Veterans Affairs loans, compared with 18% in 2010.

A Times analysis of federal loan data shows that FHA mortgages from nonbank lenders are seeing more delinquencies than similar loans from banks. Just 0.9% of FHA-insured loans issued by banks from October 2013 to September of this year were seriously delinquent — several months behind — compared with 1.1% of nonbank loans. Put another way, nonbank FHA loans are about 23% more likely to go bad than those issued by banks.

Consumer advocates worry that the new crop of mortgage companies, particularly those with ties to now-defunct subprime lenders, may again take advantage of borrowers.

“The idea that a lot of the folks who benefited during subprime are now back in action calls out for closer scrutiny,” said Kevin Stein, associate director of the California Reinvestment Coalition, a fair-lending advocacy group in San Francisco.

The surge in nonbank lending also has prompted alarm at Ginnie Mae, a government corporation that monitors FHA and VA lenders. Ginnie Mae’s president, Ted Tozer, has requested $5 million in additional federal funding to hire 33 additional regulators.

“These firms have grown so fast,” he said.

FHA borrowers can put down as little as 3.5% of the loan amount and have a credit score as low as 580, which could signal a past bankruptcy or debts sent to collection.

Even for borrowers with good credit, smaller down payments add risk. If home prices fall even a little, those borrowers can end up owing more than their homes are worth, which can encourage some to default.

But a small down payment was attractive for Abraham and Crystal Cardona. They both have high credit scores, approaching 800, but in September they chose an FHA loan from a nonbank lender when they bought a $500,000 home in La Mirada.

The minimal down payment of $17,000 left them enough savings to buy a few appliances and put a fence around their backyard pool.

“We were thinking about what our monthly payment was going to be, not where the loan was coming from,” said Abraham Cardona, 32.

In 2005, nonbank lenders, many peddling subprime loans, accounted for 31% of all home loans, according to a Goldman Sachs report.

Many of those firms went under. By 2009, just 10% of home loans came from nonbanks.

But last year, nonbanks accounted for 42% of all mortgages.

At a September conference, John Shrewsberry, Wells Fargo’s chief financial officer, said the bank was not interested in making loans to riskier borrowers, even those who meet FHA standards.

“Those are the loans that are going to default, and those are the defaults we are going to be arguing about 10 years from now,” he said. “We are not going to do that again.”

The bank pullback is a problem for Ginnie Mae, which guarantees FHA and VA loans that are bundled as bonds and sold to investors. It’s much easier to ensure that banks have reserves to cover defaults than it is for the crop of new lenders, with a variety of business models.

“Where’s the money going to come from?” Tozer asked. “We want to make sure everyone’s going to be there when the next downturn comes.”

Consider Moorpark-based PennyMac, now the nation’s sixth-largest mortgage lender, according to trade publication Inside Mortgage Finance. It has a corporate structure that might be difficult for regulators to grasp. The business is two separate-but-related publicly traded companies, one that originates and services mortgages, the other a real estate investment trust that buys mortgages.

PennyMac is run by Stanford Kurland. He was the second-in-command to Angelo Mozilo, the Countrywide founder who came to symbolize the excesses of the subprime mortgage boom. Kurland maintains that PennyMac isn’t overly complicated and takes pains to distance himself from subprime excesses. He was fired from Countrywide in late 2006, before the worst of its loans were made, because of disagreements with other executives, he said.

Two years later, he and other former Countrywide executives founded PennyMac, which made $36.9 billion in mortgages in the first nine months of this year.

Kurland said he agrees that Ginnie Mae needs more resources to monitor nonbank lenders, but he bristles at the notion that they are making riskier loans.

“The fact that someone is a nonbank doesn’t give them the ability to originate a loan outside of the standards,” he said.

Comment by Captain Lou Albano
2016-06-28 06:37:40

“the firms maintain that they adhere to strict new lending standards to protect against mass defaults.”

Not sure what their point is considering it was price that was the primary cause of default.

Comment by Ben Jones
2016-06-28 07:12:07

‘price that was the primary cause of default’

We had a weekend topic on this recently. What determines a “good or bad” loan is, will the lender recover their money? Recessions will happen. People will lose jobs, get sick, divorced, we all know that. This is why lender require a down payment. They qualify borrowers. Sure some will have life happen, but house prices are so stable that the lender on the whole will be OK. That’s why mortgage interest rates are naturally so low compared to credit cards.

But interest rates aren’t naturally low. And why is there all this push push for lower down payments? As we discussed yesterday, subprime used to be reserved for social goals. What’s it doing in the regular market at all? Come to think of it, prime loans were/are the vast majority of foreclosures, so aren’t subprime loans more of an indicator that somethings not right than the problem itself?

What’s everybody so worried about? House prices done recovered real good! Let’s take off the training wheels. We don’t need the GSE’s or FHA, there’s lines of qualified people with good jobs writing love letters to sellers with offers over asking. These houses and the loans on them are bedrock. Otherwise no one would loan 97% LTV at 3.75%, right?

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Comment by Captain Lou Albano
2016-06-28 07:43:44

It doesn’t get anymore subprime than 3% down payment. These mortgages will go into default…. by design.

Comment by Rental Watch
2016-06-28 09:02:01

But interest rates aren’t naturally low.

I used to be certain of this statement. I no longer am (certain).

I am a believer in reversion to the mean, which is why I expect rates to rise, home building to increase, home price appreciation to slow/reverse, etc.

And so I still believe rates are going to rise, but to I believe they are artificially low? I still think that they might be…however, I’ve heard one strong argument as to why things may be different for a while.


Before the crash, I recall hearing a wealth advisor note that interest rates over the next 20 years should on average be meaningfully lower than the last 20 years. With aging populations growing in the US and many parts of the world, there would be a greater and greater hunger for yield (pension funds, retirees, etc.).

I knew professionally a guy who was a real estate exec at a large corporate pension fund. He is frequently the smartest guy in the room. Post crash, I ran into him at a conference and started talking about the investment environment.

Based on prior conversations with him, I thought for sure he’d be buying super-cheap beaten up real estate, that may have been empty, or needed a lot of work to fix. In other words, projects that had no cash flow initially, but once fixed and leased, would generate lots of cash flow. High total return investments, but no current yield.

Nope. He seemed depressed that he wasn’t buying such things. The message from the top was that they needed yield now. They were having more and more retirees, and so they needed immediate cash flow to make pension payments…he was out of the “buy broken and fix” game, and now he was buying steady yield.

And this was at a time when buying broken assets was particularly attractive.

OK, fine, I think demographics are a strong argument for why yields would be somewhat lower than before the crash. But not THIS low.

So, at this current moment in time, rates MUST be artificially low, right?

There are two schools of thought…

1. That the Fed sets rates;
2. That the Fed reacts to market conditions…if they keep rates too low for too long, inflation appears. If they keep rates too high for too long, deflation appears.

Those who argue that rates are NOT artificially low, would say that there is weak demand for investment capital, which is due to weak demand generally. Overall, a weak economy.

Those who argue that rates are artificially low would say that inflation has appeared as asset price inflation.

I think both are valid arguments, but I’m not certain one way or the other.

Comment by Captain Lou Albano
2016-06-28 09:05:14


Like auto dealers, the fed buys down the interest rate. A market discovered interest rate is in the double digits my friend.

Comment by Professor Bear
2016-06-28 19:37:51

“This is why lender require a down payment.”

A related benefit of requiring sizable down payments is to limit the amount by which a buyer can overpay. For example, compare a buyer who is required to make a 10% downpayment to one who is only required to only come up with 1% of the purchase price. A buyer who has $10,000 available to make a downpayment could borrow only $100,000 for a home purchase under the 10% downpayment constraint. By contrast, they could potentially borrow up to $1,000,000 if only 1% downpayment were required.

Do you see the problem with low downpayment requirements?

Comment by Palm Beach County
2016-06-28 03:50:54

China’s reaction to Brexit has already put the entire world at risk……


Comment by Anonymous
2016-06-28 11:24:14

The sky is falling!!!

Comment by Professor Bear
2016-06-28 19:38:50

Everywhere and always…

Comment by Palm Beach County
2016-06-28 04:10:07

Do you lock these 2% rates up for 30 years now…even if we are in a ‘bubble’ and real estate prices could take a ‘drop’……

Brexit : Elusive 2% Mortgage Rates Are Coming (FHA, VA, USDA, Conventional)


Comment by Apartment 401
2016-06-28 04:43:16

Airbnb blamed for NYC’s high rents and dwindling housing market:

“Airbnb is hurting the city’s already limited housing supply, and is likely removing thousands of units from the market and driving up rents for everyone, according to a study released Monday.

The study from two housing advocacy groups — Housing Conservation Coordinators and MFY Legal Service — identified just over 8,000 Airbnb listings from the site that advertised so frequently that the analysis concluded they were likely illegally converted into hotel rooms.

More than half of those units were being offered for rent by hosts who had multiple units up for rent on the site — a sign that they were being run by illegal hotel operators, the report found.”


Comment by Bill DaWahl
2016-06-28 04:44:28

Well, isn’t that special? All that Brexit-is-Armageddon panic was a big. fat. lie. Central banks to the rescue, global stocks rebound and all’s right with the world!


Comment by Ben Jones
2016-06-28 05:52:48

That’s what I’ve been wondering about. Nothing has even changed yet and Hillary is complaining about how many billions her buddies have lost. Uh, you’ll make it up by Thursday globalists, so give me a break from the scaremongering.

Comment by Ben Jones
2016-06-28 06:23:35

‘Obama, Canadian Prime Minister Justin Trudeau and Mexican President Enrique Pena Nieto hold the so-called Three Amigos summit Wednesday in Ottawa. The Brexit vote was “a very big shock” for the three leaders, whose economies under Nafta collectively exceed that of the EU, according to John Kirton, director of the University of Toronto’s G-7 Research Group. As a result, the trio is under more pressure to display unity and declare “globalization is good for us and we still deeply believe it and are reaping the rewards as we speak,” Kirton said.’

‘This week’s talks come amid a dispute over a visa restrictions Canada placed on Mexicans to stem asylum claims. Trudeau, who took power last November, campaigned on “immediately” dropping the requirement, yet it remains in place.’

“There’s a lot of confusion in Mexico, hurt feelings and disenchantment with Canada over this issue,” said Laura Macdonald, a professor of political science at Ottawa’s Carleton University.’

‘yet it remains in place’

Come on Justin, lets get some buses of illegals loaded up here in the US and head for Ottawa! Don’t you know there’s hurt feelings in Mexico?

Comment by oxide
2016-06-28 07:42:47

Last Friday, the Brexit post-mortem media was quick to blame the “uneducated” masses of old Brits who wanted to keep Britain white. Why is it that masses of uneducated Brits are scorned while masses of uneducated migrants are welcomed in?

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Comment by dandroidz
2016-06-28 08:02:32

From my perspective, and feeds of my UK friends, the younger folks are crying the sky is falling, and that the older Brits or uneducated Brits just don’t know any better. And that they don’t understand the complexities of the EU relationship or advantages, and that Britain isn’t a colonial empire anymore.

A snippet of video had one woman who summed it up stating her family fought for British sovereignty in WW2 and they simply want Britain back. If the younger folks think the EU is so great, why do they use pounds? Amazing how centuries of sovereign might and currency is forgotten because of a couple of decades of alleged economic prosperity due to the Union. Me thinks the younger folks might just be mad they wont be able to travel around Europe so easy anymore?

Comment by Bill DaWahl
2016-06-28 08:27:58

Personal anecdote: I haven’t had an international sale to Europe in a few months. Today, I had a sale to the UK. Thanks, Brexit!

Comment by In Colorado
2016-06-28 09:31:51

Me thinks the younger folks might just be mad they wont be able to travel around Europe so easy anymore?

Like they’ll need a visa when they travel. I guess they’ll have to stand in line with the unwashed (non EU) crowd and not be able to use the EU express line at immigration. Oh the humanity!

Comment by Anonymous
2016-06-28 12:05:25

The Three Amigos!!


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Comment by rj soon not to be in chicago
2016-06-28 13:17:40

The true Three Amigos were:

Mark Jackson,
Vance Johnson,
Ricky Nattiel

Nos. 80, 82 and 84 respectively.

Elway was never the same after those guys took the field.

Comment by PDneXt
2016-06-28 08:41:48

Dang, Art Cashin called it. 11 a.m. Tuesday.

Comment by oxide
2016-06-28 04:51:19

From yesterday:

Comment by Karen
2016-06-27 20:03:18

Rates starting at 4.875%
90% LTV with Only 24 months seasoning from:
Short Sale

etc. etc.

It’s easier to qualify for these loans that to get into many rentals. People with ‘qualifications’ like this would not be able to get an apartment in 95% of the complexes here in N. Texas. But they can get enormous loans to buy houses.

What the hell is going on?


What the hell is going on? They are being misleading. That combination of 4.9%+10%down+less-than-perfect-credit *doesn’t exist.* Look at the requirement charts. If you want that 4.9% loan, you need a FICO of 725, two years of W-2, AND 35% down. Or, if you want that 90% LTV, you need 700 FICO and pay 7.2% interest rate. There is always some catch.

But I did find something interesting hidden in those requirements charts — two Interest-Only loans! The Citadel “outside of Dodd Frank” loan offers an interest only loan, but you need at least 25% down and there’s a $250K max. The Maggi Hybrid chart also offers an interest-only loan with a $350K max, but I can’t tell if that’s a real loan or an adjustment.

So I guess that there are a *few* I/O loans out there, but they are hard to get, and clearly not intended for the general public. So it’s not the heydey of 2006.

Comment by Captain Lou Albano
2016-06-28 05:23:35

Or you can get a 3%down 30 year mortgage just 3 years after your previous bankruptcy or default.

It doesn’t get more subprime than that Donk.

Comment by oxide
2016-06-28 05:44:03

I’m focusing on monthly payment, not down payment. *Learn* the difference.

Comment by Captain Lou Albano
2016-06-28 06:11:10

Financing a depreciating asset at a grossly inflated price when the cost to rent or lease it is less than half that monthly cost is the focus.

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Comment by Ben Jones
2016-06-28 05:49:39

‘Comment by oxide’

blah, blah yawn.

(Wow, being thoughtlessly dismissive is fun! You get a sense of superiority combined with the rush of pushing a 3 year old down).

Comment by oxide: “I don’t see the PITI-PITI, bang bang flashback to 6 AM, February 3rd, 2005, when I was reading the Washington Post and it hit me BAM!”

If that’s what you are waiting for, go find it. You spend hours and come back here and lay it all out. You convince the world. I’m not trying to make horses drink here.

Comment by Captain Lou Albano
2016-06-28 06:13:56

“I’m not trying to make horses drink here.”

Nor Donkeys.

Comment by oxide
2016-06-28 07:22:29

Well, you’re almost right. :grin: “I don’t see the I/O, neg-am flashback to 2005 when I was reading the HBB and BAM!”

And good thing too. Right now, HBB articles describe middle class demand as topping out at about $450K,* which is 3x the topped out middle class income of ~$150K. Prices are being kept at 3x income precisely because of the PITI-PITI standard.

If we did go back to I/O and neg-am, those $450K houses would be bid up to $650-$700K by now. Until I see that, I won’t agree that lending standards are like 2006.

*and yes, I realize that prices ARE bubbling in hot locations, but it’s techies and foreign money who are bidding up the prices now, not strawberry pickers and teachers like in 2006.

Comment by Captain Lou Albano
2016-06-28 07:39:50


Household income is $53k not 3x that amount.

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Comment by Karen
2016-06-28 12:53:24

*and yes, I realize that prices ARE bubbling in hot locations, but it’s techies and foreign money who are bidding up the prices now, not strawberry pickers and teachers like in 2006.

Yup, all those techies flocking to the hot hot hot area of Utica-Rome, NY.

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Comment by Prime_Is_Contained
2016-06-28 21:56:34

Yup, all those techies flocking to the hot hot hot area of Utica-Rome, NY.

Yep—and Grand Rapids, Michigan. And Columbus, Ohio. And Lincoln, Nebraska. Tech hotspots, all of them.

Comment by Professor Bear
2016-06-28 19:41:39

“…techies and foreign money who are bidding up the prices now…”

AKA fly-by-night investors who will try to cash out the minute prices retrench. It is pretty easy to see that if this group is the primary driver of demand, then the bottom will drop out from under demand during the next wave of price collapse.

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Comment by Karen
2016-06-28 09:09:40

“First they ignore you, then they laugh at you, then they fight you, then you win.” - Mahatma Gandhi

Comment by In Colorado
2016-06-28 09:36:42

“So why did I lose?” - Dalai Lama

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Comment by Karen
2016-06-28 14:14:42


1950 to present

Tibet under the People’s Republic of China

In 1951, Tibetan representatives participated in negotiations in Beijing with the Chinese government. This resulted in a Seventeen Point Agreement which formalized China’s sovereignty over Tibet, but was repudiated by the present Tibetan Government-In-Exile shortly after.[96]

Kinda like homoaners who bewail having signed on the dotted line.

Comment by Captain Lou Albano
2016-06-28 09:12:27

“All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.”

Arthur Schopenhauer

violent opposition=rage

Comment by Apartment 401
Comment by dandroidz
2016-06-28 07:01:55

Yeah one place, Somerville MA, used to be called “Slumerville”. Now its seeing a huge migration in younger folks and house prices are climbing. It’s right near Interstate 93, 15 mins north of Boston, next door to Cambridge. I wasn’t impressed when I drove through it.

Comment by Anonymous
2016-06-28 12:01:13

Interesting, an entire article about gentrification…but the word “gentrification” doesn’t appear even once in the article.

Comment by Puggs
2016-06-28 14:50:50

From the article…”Young professionals with ever-more disposable income may also value even more today the kinds of amenities, such as restaurants, bars and theaters, that are easier to find in densely populated downtowns than in the suburbs.”

That kind of lifestyle eats one alive!

Just replace “disposable income” with “disposable credit”.

Comment by Apartment 401
2016-06-28 05:15:31

“Several neoconservatives have spent years gushing about Clinton’s penchant for supporting basically every foreign war or military escalation in the last decade, including Kagan, who said in 2014: “I feel comfortable with her on foreign policy … If she pursues a policy which we think she will pursue, it’s something that might have been called neocon, but clearly her supporters are not going to call it that; they are going to call it something else.”

Her campaign hasn’t really deviated from that position, either. While she’s hit Trump for being too erratic and dangerous a man to have in charge of the nuclear codes, she also promised more ground troops in the fight against Isis, expressed support for a no-fly zone in Syria (effectively a declaration of war against Assad) and called for more weapons for various rebels in the region.

Just this past weekend, we learned yet another lesson about what constant military intervention in the Middle East has gotten us: one more disaster where untold numbers of US guns and weapons fell into the hands of the people we are fighting. The New York Times reported that the classified CIA program that armed and trained Syrian rebels directly fighting Assad – a policy Clinton pushed for while in the Obama administration and that she has subsequently said we should expand – led to the systematic stealing of millions of dollars of US weapons, which were then sold on the black market and even contributed to the killing of Americans.”


Comment by MacBeth
2016-06-28 08:04:36

NeoCons = Progressives.

It will be five years this coming October.

Can you get anymore NeoCons = Progressives than Hillary? Don’t know, but she serves as a heck of a yardstick.

Comment by Apartment 401
2016-06-28 08:49:42

On stage with Elizabeth Warren yesterday? Check.

Fundraising with Robert Kagan? Check.

Comment by CalifoH20
2016-06-28 11:50:16

neo cons like Bush, cheney, war mongers, do nothings, cheaters

Comment by snake charmer
2016-06-28 08:10:29

From a foreign policy standpoint, Clinton may be more dangerous than Trump. I post on the Daily Kos, a lot less now than I used to, and I’ve come to the conclusion that, for an appreciable percentage of the Democratic Party, the main problem with the Iraq War was that a Republican started it.

Comment by Apartment 401
2016-06-28 08:53:25

Can you name all the countries Obama has bombed or droned?


Am I missing any?

Comment by Ben Jones
2016-06-28 08:56:11


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Comment by rj soon not to be in chicago
2016-06-28 13:19:20


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Comment by Bill DaWahl
2016-06-28 10:05:58

Yes, I’ve been wondering these past few days how screwed as a human being does someone have to be to support Hillary Clinton. Seriously. She’s so obviously over the top corrupt and criminal.

Here’s a list of the scum of the earth. I don’t care how much money they have or how great a musician they are. Scum of the earth:


Comment by oxide
2016-06-28 16:58:06

I gave up Daily Kos over a year ago. (I only lurked.) It used to have good threads and some fun social stuff. Now, the site just asks for money and crashes my internet.

Comment by CalifoH20
2016-06-28 19:07:50

the war for oil was a joke Cheney played on Bush and it cost taxpayers $6 trill and gave us ISIS.

not party related, deckhead related

Comment by Apartment 401
2016-06-28 05:32:28

“Global population hit 7.3 billion midway through 2015, an increase of 2 billion since 1990. It will continue to climb steadily, according to forecasters, reaching 8.5 billion in 2030, 9.7 billion in 2050, and 11.2 billion in 2100.

But there is more to the population story than unprecedented numbers. The rate of growth is continuing to slow – the overall growth rate has been falling since the 1970s – and demographics are shifting.

“The number of births has peaked, or has levelled off globally,” says John Wilmoth, director of the population division in the UN’s department of economic and social affairs. “Some countries still have increasing numbers of births but for the world as a whole, we’re not adding people to the population through births. We’re mostly adding to the population because people are living longer.”


Comment by snake charmer
2016-06-28 08:13:59

I’m not so sure about those “climbing steadily” forecasts. History is not linear. All those people will present an unprecedented opportunity for disease.

Comment by Bill DaWahl
2016-06-28 08:30:42

Either that, or Logan’s Run.

Comment by rj soon not to be in chicago
2016-06-28 13:23:05

Or Soylent Green

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Comment by Senior Housing Analyst
2016-06-28 06:19:50

Victoria Park (For Lauderdale), FL Housing Prices Crater 11% YoY As Speculators Slash Prices


Comment by Captain Lou Albano
2016-06-28 06:26:22

“This Financial Bubble Is 8 Times Bigger Than The 2008 Subprime Crisis”


Comment by Puggs
2016-06-28 13:42:53

The only thing stopping this one is the availability of ink and linen!

Comment by Professor Bear
2016-06-28 06:26:46

Has the Brexit panic already ended before it even began?

In American Markets, Panic Begins to Subside
JUNE 26, 2016

The market panic that initially met Britain’s vote to leave the European Union showed signs of subsiding on Monday.

While stocks continued to slide for a second trading day, by the close of business Monday a measure of calm appeared to be returning to certain significant corners of the market.

The benchmark Standard & Poor’s 500-stock index was stable for most of the day after dropping around 2 percent in the first minutes of trading. It ended the day down 1.8 percent. Markets in Japan and China finished Monday in positive territory.

A gauge of expected future volatility in the markets, the so-called VIX, fell on Monday after spiking on Friday, and remained far below the level it reached last summer when problems in the Chinese economy came to the fore.

“I’m not expecting contagion here,” said Jack A. Ablin, the chief investment officer at BMO Private Bank, based in Chicago. “We’re pretty well insulated,” he said of the American economy.

Comment by Captain Lou Albano
2016-06-28 06:40:25

It seems this “panic” is an MSM creation.

What can be more optimistic than falling prices to dramatically lower and more affordable levels accelerating the economy and creating jobs?

Comment by dandroidz
2016-06-28 06:58:09

I just read a headline on a MSM website stating “Brexit Wiped out $3 trillion in wealth”. Weird how a couple of digits on a board and imaginary slips of paper somehow equates to actual wealth?

Comment by Combotechie
2016-06-28 07:06:27

“Weird how a couple of digits on a board and imaginary slips of paper somehow equates to actual wealth?”

This is what prices are about. Price rises create wealth. Price declines destroys wealth.

Prices are set by vast multitudes of complete strangers hence the amount of one’s wealth is set by vast multitudes of complete strangers. If these strangers are having a good day then your wealth increases. If their day sort of sucks then much of your wealth vanishes.

Oh, and as for pensions and such? Same thing.

A bit screwy (and scary) but there it is.

Comment by Rental Watch
2016-06-28 09:38:22

How many shares of stock trade in a given day?

For AAPL, it’s about 0.6%.

So when prices fell after the Brexit, it’s because there were a few more sellers than buyers, but what does that mean, that 1% traded that day?

There will be volatility whenever there are big announcements…but I am still not convinced that the Brexit will be a very big deal outside the UK.

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Comment by dandroidz
2016-06-28 06:39:05

You know, when piece of ‘data’ I always appreciate is boots on the ground type. My brother will work on cars, sell them, buy a new project, drive it a bit, sell, etc. Lately people have not been nibbling on any of his for sale cars, any phone calls he gets are for trades. I know its not housing related, but I feel like it exemplifies the “cash poor” and underwhelming true state of our economy. A few yrs back, he could move a half way decent Civic within days. Now…not so much. Maybe its because it’s personal sales and he cant offer 84 month 0.9% APR???

Comment by Combotechie
2016-06-28 06:56:35

“Now…not so much. Maybe its because it’s personal sales and he cant offer 84 month 0.9% APR???”

Sounds about right. People are short of cash. If credit makes things happen and there is no credit then things don’t happen.

A reminder …


Comment by dandroidz
2016-06-28 07:09:35

And when he sells a car, its not priced high or for major profit, its because he’s done playing/tinkering and just needs driveway space. One of the vehicles is typically sought after, a 79 Ford Bronco, beautiful condition, but all he receives is trade calls. People are just cash poor.

Comment by The Central Scrutinizer
2016-06-28 07:22:28

Maybe there is a new preference for cars that tend to stay shiny side up?

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Comment by dandroidz
2016-06-28 07:28:25

I read somewhere that Americans are still on average holding on to cars much longer than other citizens of countries. I wonder how much the figure has declined over the last decade or so, showing a trend in people rotating newer cars more frequently? Or maybe a higher tendency to cheap leases?

Comment by The Central Scrutinizer
2016-06-28 08:25:12

I always have kept my cars until their demise, with the exception of an overpowered road phallus I leased, and was glad to return before I met my demise in it.

Comment by In Colorado
2016-06-28 11:27:35

I read somewhere that Americans are still on average holding on to cars much longer than other citizens of countries.

In most of the EU cars are subject to very stringent inspections, which produce mandatory list of repairs. When a car approaches the 10 year mark the repair list can be as much as $5000. The idea is that unless a car is like “new” that is isn’t roadworthy, whereas in most of the US the only test cars have to pass in most states is the smog test.

When I told my British BIL that the average age of an American car is 11 years he was astounded, since over there they would end up in the junkyard by that time, even thought they were still perfectly good cars. During my trip last year to the UK the near complete lack of beaters on the road really stood out to me.

Comment by TheCentralScrutinizer
2016-06-28 15:14:48

When I was in Anchorage this winter, I was amazed by the number of cars held together with tape.

Comment by oxide
2016-06-28 07:47:37

What are they offering to trade for the refurbished car? An older car?

Comment by dandroidz
2016-06-28 07:56:19

Yeah typically. In the instance of the Ford Bronco, I believe he had multiple offers for older trucks, like a Chevy K10 with some modded out V8s and the like.

He has a good eye for value, what sells, what wont, or if selling parts is better off than the whole vehicle. As of right now his 2 for sale aren’t moving.

Comment by azdude
2016-06-28 11:12:00

I have noticed prices for older cars < 1990 have been going up.

50k for a truck is a little ridiculous imo.

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Comment by rms
2016-06-28 18:00:14

“50k for a truck is a little ridiculous imo.”

Actually it’s closer to $60 fugg’n thousand.

Comment by Senior Housing Analyst
2016-06-28 06:55:45

“Case-Shiller Home Prices Rise At Slowest Pace In 8 Months As San Francisco Sales Slump”


Comment by Palm Beach County
2016-06-28 07:17:15

10 most stable housing markets in America…
Where homeowners don’t see many significant pricing downturns

By Catey Hill
Published: June 28, 2016 9:51 a.m. ET


Comment by dandroidz
2016-06-28 07:25:55

Interesting. Ever since I’ve moved to north of Boston, I’ve realized this area has money and it’s been here and not going anywhere. There has been a huge surge in prices the last couple of yrs, but when I glanced at some properties at Zillow, traditional SFH didn’t drop off dramatically in 2008-2010, yes they declined, but not as bad as you would think. The old money, tech, electronic, and medical money has been here a very long time.

Comment by CalifoH20
2016-06-28 11:38:16

Sounds like your town is different. “It is different hear.

Comment by TheCentralScrutinizer
2016-06-28 15:15:54

It’s different *heah*.

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Comment by Dandroidz
2016-06-28 15:38:02

I dislike New England, so I’m not really cheer leading this area by any means. Just telling you my observations of the generational wealth that is abundant around these parts. Which sort of makes sense seeing how some of the merchant wealth was established as early as the 1600s in these parts…

Comment by Captain Lou Albano
2016-06-28 08:00:49

Remember….. If you have to borrow for 15 or 30 years, it’s not affordable nor can you afford it.

Comment by dandroidz
2016-06-28 08:10:54

What if 45 million tax payers subsidize/guarantee it though? Lol.

Comment by Captain Lou Albano
2016-06-28 08:14:00

Doesn’t change the fact all their stuff will be found out at the curb.

That’s what happens when you pay massively inflated prices for what is always rapidly depreciating asset.

Comment by dandroidz
2016-06-28 08:28:21

Friend of mine bought a foreclosure, the previous “tenants” were angry so they ripped up the deck and tore the pool liner.
I imagine there are way worse stories regarding foreclosure purchases.

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Comment by The Selfish Hoarder
2016-06-28 09:03:36

I see foreclosures for auction in my area. Same three houses for several months. I think it’s a bait and switch scam from the auction house. The pictures I saw of them don’t show damage (maybe all hidden). They are supposed to have opening bids between $280k and $380k.

However I saw pictures of a house for sale in this same area for around $600k, with clearly water damage in the ceiling and carpeting.

Looks like $15,000 to $25,000 in repairs just from those pictures - so far.

Comment by The Selfish Hoarder
2016-06-28 08:50:27

Doesn’t change the fact all their stuff will be found out at the curb.

nice punchline.

Got gold?

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Comment by Captain Lou Albano
2016-06-28 08:56:03


Why admit owning either?

Comment by The Selfish Hoarder
2016-06-28 12:17:03

Answering “yes” to “Do you have an AK-47?” is quite a difference compared to answering “yes” to “Do you have any firearms?”

Comment by Captain Lou Albano
2016-06-28 12:42:41

AK or Ruger. A distinction without a difference to gun grabbers.

Comment by snake charmer
2016-06-28 08:27:15

“Cabins in Melfort went to residents of nearby communities, while ‘financially secure millennials’ dominated the market in the Regina region.”

Melfort is the rural Saskatchewan small town where former NHL enforcer Derek Boogaard spent time growing up. In the recent book about him, it comes off as something of a provincial backwater.

Isn’t “financially secure millennials” an oxymoron? Any place where financially secure millennials dominate the housing market is headed for a rather abrupt fall.

Comment by Senior Housing Analyst
2016-06-28 08:31:46

Point Loma Heights(San Diego), CA Housing Affordability Surges As Housing Prices Crater 16% YoY


Comment by Palm Beach County
2016-06-28 08:33:46

Is this really something ‘new’….that is amazing if true. As a realtor would you run a commercial stressing say $1,000 for every listing? How much?

Boca broker’s novel way to land listings: Pay homeowners for them
June 28, 2016 |


Comment by Captain Lou Albano
Comment by The Selfish Hoarder
2016-06-28 09:00:05

British bitcoin market sent extraordinary signals ahead of the Brexit vote

“New data from Coinbase, which offers the leading bitcoin wallet and a popular bitcoin exchange, proves that the prospect of Brexit had an impact on bitcoin even before the referendum vote.

In the week leading up to the vote (June 13-20), Coinbase saw a 55% increase in new account sign-ups from Great Britain, and a 350% increase in bitcoin purchases from UK customers.

On the day of the Brexit vote, Coinbase saw an 86% increase in Great Britain signups.”


Comment by Captain Lou Albano
2016-06-28 09:03:41

Which newspaper has the most tall tales and BS? I nominate the washington post with the NYT a very close second.

Comment by Apartment 401
2016-06-28 10:04:58

Washington Post has essentially devolved into a giant anti-Trump editorial page. Woodward and Bernstein it certainly is not.

Comment by dandroidz
2016-06-28 10:56:13

Its owned by Jeff Bezos isn’t it? That’s one of Trumps largest beefs with that “news” paper.

Comment by Ben Jones
2016-06-28 11:06:53

‘The Washington Post, the neocons’ media flagship, has fired a broadside at a new documentary after it blasted a hole in the side of the anti-Russian Magnitsky narrative, which helped launch the new Cold War, writes Robert Parry.’

‘Though I am no expert on the Magnitsky case – and there surely may be flaws in the documentary – what is clear is that the widely accepted version of the Magnitsky case, portraying him and his boss as noble do-gooders who become victims of a convoluted police conspiracy, is no longer tenable or at least deserves a serious reexamination.’

‘But preventing the Western public from seeing this important film – and then demonizing it in a Washington Post editorial on the assumption that almost no one will see it – amount to the behavior of a totalitarian society where “agit-prop” does rule, except in this case it is anti-Russian agit-prop that escapes any serious scrutiny.’


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Comment by CalifoH20
2016-06-28 11:41:35

How does Trump feel about Saudi owned Fox News?

Trump is a moron, in the same sense Bush is a moron.

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Comment by Raymond K Hessel
2016-06-28 17:04:25

But on the moron scale, both pale in comparison to you and the other HBB pineapples.

Comment by rms
2016-06-28 18:08:05

“That’s one of Trumps largest beefs with that “news” paper.”

“If you don’t read the newspaper, you’re uninformed. If you read the newspaper, you’re mis-informed.” —Mark Twain

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Comment by CalifoH20
2016-06-28 11:40:12

Your local paper is bad, The Buffalo News.

Comment by Captain Lou Albano
2016-06-28 12:14:18


Comment by taxpayers
2016-06-28 10:49:47

I hope absentee landlords buy and leave property vacant here= no school kiddies = lower taxes

Comment by Puggs
2016-06-28 11:27:06

So are the hoard of boomerang subprime buyers gonna default hunderds of thousands of dollars again like they did the first time around?

The fact that they are able to re-enter the market at 3% down and overpaying is troubling.

Comment by Dandroidz
2016-06-28 15:40:46

And as less people pay taxes, earn income, the per capita bailout of subprimers by able bodied Americans will dramatically increase compared to the last go around…

Comment by cactus
2016-06-28 11:40:18

Chinese joke told to me by one of our many Chinese Engineers

In China a smart entrepreneur wanted to start a engineering business so he sold his house for 500K to raise money and worked for 10 long years never taking a day off and finally his hard work paid off so he decided to sell his company and take it easy. Sold his company for 5M and was able to buy his house back for 5M …

Comment by phony scandals
2016-06-28 13:56:50

What happened to John Ashe?

Comment by phony scandals
2016-06-28 14:38:13


http://conservativetribune.com/official-testify-against-hillary/ - 186k - Cached - Similar pages
1 day ago

Comment by Senior Housing Analyst
2016-06-28 14:25:35

Southlake, TX Affordability Advances As Housing Prices Plummet 6% YoY


Comment by Puggs
2016-06-28 14:35:20

Next time put your phone down, pay attention. Walk to your nearest polling station and vote. Most polling stations have a VERY attractive walk score. Millennials SHOULD know this.

From ZeroHedge…

It was bound to happen: just days after a shocking Brexit outcome which was arguably lost due to the low participation of the pro-Remain, youth vote today the same youth, unhappy with the outcome it could have prevented, has congregated on London’s Trafalgar square which is the venue of the first, so far completely peaceful, anti-Brexit protest to hit London.

Comment by phony scandals
2016-06-28 14:51:48

Clinton steps up anti-TPP rhetoric

By Adam Behsudi

03/14/16 10:00 AM EDT

CLINTON STEPS UP ANTI-TPP RHETORIC: Hillary Clinton ratcheted up her rhetoric against the Trans-Pacific Partnership,

“We can not let rules of origin allow China — or anyone else, but principally China — to go around trade agreements,” Clinton said. “It’s one of the reasons why I oppose the Trans-Pacific Partnership because when I saw what was in it, it was clear to me there were too many loopholes, too many opportunities for folks to be taken advantage of.”

Read more: http://www.politico.com/tipsheets/morning-trade/2016/03/clinton-steps-up-anti-tpp-rhetoric-klobuchar-emmer-also-going-to-cuba-us-zeroing-takes-another-hit-at-wto-213193#ixzz4CugcuxXE
Follow us: @politico on Twitter | Politico on Facebook

Hillary Clinton Praises TPP As “Gold Standard In Free Trade …
https://www.youtube.com/watch?v=MpLQzeCoNnA - 201k - Cached - Similar pages
10 hours ago

Comment by Raymond K Hessel
2016-06-28 17:02:31

You have to be a special kind of stupid to believe that Hillary, whose lecherous husband gave us NAFTA, is genuinely opposed to oligarch-globalist trade deals like TPP.

Comment by Senior Housing Analyst
2016-06-28 15:22:04

“The Crackdown Begins: Chinese Bank Sues To Seize Vancouver Real Estate Assets”


Comment by Raymond K Hessel
2016-06-28 17:01:09

Wonder if it’s ever occurred to TPTB that welcoming Chinese embezzlers and money launderers with open arms may not be such a good idea, long term.

Comment by CalifoH20
2016-06-28 19:20:56

sweet!!! This means garlic bread tonight.

Comment by Apartment 401
2016-06-28 15:35:17
Comment by Captain Lou Albano
2016-06-28 16:23:19

Houses are money pits.

Comment by Puggs
2016-06-28 18:43:15

No they’re not. They’re bottomless money pits!

Comment by Raymond K Hessel
2016-06-28 17:00:09

America’s middle class will continue to shrink as long as 95% continue to vote for their own financial destruction, i.e. the Republicrat crony capitalist status quo.


Comment by Raymond K Hessel
2016-06-28 17:06:16

El Chapo needs to make a generous contribution to the Clinton Foundation. All of his legal problems would go away.


Comment by Raymond K Hessel
2016-06-28 17:11:29
Comment by Raymond K Hessel
Comment by CalifoH20
Comment by Raymond K Hessel
2016-06-28 19:54:58

Collectivist kleptocracy. Same thing we’ll get under Comrade Hillary and the Comrades of Proven Worth of the DNC, once they get their permanent Democrat supermajority.

Comment by CalifoH20
2016-06-28 22:47:29

ya voting Trump?

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Comment by Combotechie
2016-06-28 17:28:57

“The bezzle shrinks”

Say what? What the hell is a bezzle and why is it shrinking?

Words of J.K. Galbrith …

“At any given time there exists an inventory of undiscovered embezzlement in – or more precisely not in – the country’s business and banks. This inventory – it should perhaps be called the bezzle – amounts at any moment to many millions of dollars.

“It also varies in size with the business cycle. In good times people are relaxed, trusting, and money is plentiful. But even though money is plentiful, there are always many people who need more. Under these circumstances the rate of embezzlement grows, the rate of discovery falls off, and the bezzle increases rapidly. In depression all this is reversed. Money is watched with a narrow, suspicious eye. The man who handles it is assumed to be dishonest until he proves himself otherwise. Audits are penetrating and meticulous. Commercial morality is enormously improved. The bezzle shrinks.”

Comment by Combotechie
2016-06-28 17:46:07

Er, J. K. Galbraith.

Comment by Raymond K Hessel
2016-06-28 17:31:28

After ignoring popular anger in the UK over uncontrolled immigration, Oligopoly stooge David Cameron suddenly decides, post-BREXIT, to raise the issue with his globalist puppetmasters.


Comment by azdude
2016-06-28 18:04:30

Is the brexit bs winding down? Seems like some of the smart money made some easy cash on the volitility from scaring the sh@t out of people.

U need to buy stocks and homes! Interest rates have a ways to go down so prices of home could go to the moon.

Just think of rates went to like 1% for a home loan. It is very possible.

I was drinking a beer tonight and one of those commercials for keep you home ca came on talking about principal reductions of 80k. This has to be the most ridiculous bs I have ever seen.

Comment by CalifoH20
2016-06-28 19:09:16

just got a new Samsung S7….. all is well again….. fast and a great camera

Comment by The Selfish Hoarder
2016-06-28 19:59:44

I just got the S6. It has its merits. More crypto currency apps than iPhone. But I like the multiprocessing on the iPhone.

Comment by Senior Housing Analyst
2016-06-28 19:47:48

Fremont(Seattle), WA Affordability Improves As Housing Prices Tank 6% YoY


Comment by Senior Housing Analyst
2016-06-28 19:56:21

“Record 94,708,000 Americans Not in Labor Force; Participation Rate Drops in May”


Comment by CalifoH20
2016-06-28 22:43:02

Roughly 10,000 Baby Boomers will turn 65 today, and about 10,000 more will cross that threshold every day for the next 15 years.

Currently, just 13% of Americans are ages 65 and older. By 2030, when all members of the Baby Boom generation have reached that age, fully 18% of the nation will be at least that age.


Comment by Raymond K Hessel
2016-06-28 19:56:48

If you voted for Obama, McCain, or Romney, medical science might soon be able to offer you new hope.


Comment by CalifoH20
2016-06-28 22:40:47

Thank goodness, I voted for Thomas Wilson.

Comment by The Selfish Hoarder
2016-06-28 21:10:40

Just saw a realtor of Orange County post on FB. Says house prices in OC all time high and “now is a time to sell.”

Comment by phony scandals
2016-07-09 06:19:20

Fooling Hitler: The Elaborate Ruse Behind D-Day - History in the …
http://www.history.com/news/fooling-hitler-the-elaborate-ruse-behind-d-day - 86k - Cached - Similar pages

Comment by phony scandals
2016-07-09 13:34:35

SBA Chief Blasts Obama, De Blasio For ‘Tacit Support’ Of Dallas …
http://newyork.cbslocal.com/2016/07/08/sba-chief-ed-mullins-dallas/ - 96k -

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