Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Tue, Aug 4 1992 Date: Tue, 4 Aug 92 07:01:11 EDT Message-ID: 08-04 0000 DECISIONLINE: Real Estate USA TODAY Update Aug. 4, 1992 Source: USA TODAY:Gannett National Information Network SOME DEDUCTIONS MAY BE RESTORED: The Senate appears likely this week to approve restoring some passive loss deductions for real estate developers and other property professionals. To pay for the break, the depreciation period for real estate would be extended from 31 1:2 years to 40 years. That would raise taxes for property owners. BUYERS URGED TO ASK ABOUT LEAD: Dr. James Brown, a Rhode Island pediatrician who is an expert in lead poisoning, says potential home buyers should seek to solve lead problems before buying. Lead, which can damage a child's brain, kidneys, blood and central nervous system, is most commonly found in water, paint and dust. (For more, see special Lead package below.) CONSTRUCTION POSTS DECLINE: The Commerce Department's construction report for June showed that construction spending declined 1.5%, the largest loss since the 1.8% drop in May 1991. Lawrence Hunter, U.S. Chamber of Commerce, said, "The large drop in June construction spending was caused by budget problems in local, state and federal budgets that led to the big fall-off in government construction." UNITED BUYS COMMONWEALTH: The U.S. Bankruptcy Court in Boston has approved the sale of the loan-origination business of Commonwealth Mortgage Co., Burlington, Mass., to United Savings Association of Texas FSB. The sale price was $1.75 million. It will operate under the banner of Commonwealth United Mortgage, a division of United. MORTGAGE FUNDS IN NEW ENGLAND: Commonwealth United Mortgage, a division of United Savings Association of Texas FSB, Tuesday will announce a significant commitment of mortgage funds in New England. Commonwealth United Mortgage, headquartered in Houston, is the country's 16th largest mortgage originator. It now has 75 offices in 24 states. Thirteen offices and nearly 200 employees are in New England. RTC TO HOLD AUCTION SEMINAR: The Resolution Trust Corp. will hold a seminar Thursday in Los Angeles to explain the procedures for its auction of $500 million in non-performing loans, to be held Sept. 9. To be auctioned are residential and commercial loans secured by property in 45 states, as well as other consumer and non-secured loans. Seminar reservations can be made by calling 1-800-264-3683. FIXED-RATE MORTGAGES DECLINE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.05% Monday, down from Thursday and down from 8.08% a week ago. They were 9.44% a year ago. For 30-year adjustable rate mortgages, the rates were 5.37%, down from Thursday and down from 5.45% a week ago. A year ago they were 7.22%. ARM INDEXES SHOW MIXED CHANGES: The one-year Treasury ARM index rates were listed at 3.57% Monday, up from Thursday and up from 3.53% a week ago. A year ago they were 6.18%. For the 11th District ARM index, rates were at 5.258%, down from Thursday and down from a week ago, when they were 5.290%. A year ago the rates were at 7.155%. T-BONDS EDGE UP: Treasury security rates for 30-year bonds showed an increase to 7.45%, up from 7.42% Thursday but down from 7.51% a week ago. A year ago the rates for T-bonds were 8.22%. SPECIAL PACKAGE ON LEAD: LEAD NOT CONFINED TO SLUMS: In water, lead comes primarily from lead pipes, which still exist in some older homes. Many public water systems also have lead pipes in the ground, most often individual home service lines. But even homes with individual wells or newer plumbing may have lead present in solder used on pipes. BUYERS SHOULD HAVE WATER TESTED: The federal government did not ban lead in solder until 1988. Robert Clark, director of the drinking water research division for EPA in Cincinnati, recommends potential homeowners have water tested. "It might not hurt to have it a condition of the sale," he says. 10-YEAR-OLD HOMES A THREAT TOO: Although very old lead pipes likely have developed an inner protective coating that prevents lead from leaching into drinking water, more problems may be found in homes built in the early 1980s. This was just before lead solder was outlawed, and enough time has not yet passed for the protective coating to form, says a spokeswoman for the EPA's safe water hot line in Washington, D.C. (End of package.) Real Estate Editor: Susan M. Andrews. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM