Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.real,americast.usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Mon, Oct 5 1992 Date: Mon, 5 Oct 92 04:46:08 EDT Message-ID: 10-05 0000 DECISIONLINE: Real Estate USA TODAY Update Oct. 5, 1992 Source: USA TODAY:Gannett National Information Network HOUSE PASSES REGULATORY BILL: The House of Representatives passed a compromise bill to regulate Fannie Mae and Freddie Mac, two government-sponsored mortgage enterprises. Fannie Mae and Freddie Mac, by purchasing mortgages, replenish the amount of funds that institutions have available to lend home buyers. The House bill sets capital standards for the two enterprises. (For more, see special Bill package below.) FIRST-TIME TAX CREDIT DROPPED: Congressional negotiators agreed on a multi-billion dollar economic recovery tax bill Saturday. Negotiators dropped the $2,500 tax credit for first-time home buyers proposed by President Bush. The legislation does retain tax relief for those investing in real estate. The National Association of Home Builders had endorsed the compromise before the first-time tax credit was dropped. TIMESHARE SALES SOAR: Sales of vacation timeshares reached record heights, topping $3.7 billion worldwide in 1991. The American Resort Development Association said Friday that there are currently more than 3,000 timeshare resorts on six continents with over 2.3 million owners worldwide. This represents a 650 percent increase from 1980, due in large part to the work of the exchange companies and developers. OWNERSHIP DIPPED IN EARLY 1980s: The overall homeownership rate fell from 66% to 64% during the 1980s, according to the Housing and Household Economic Statistics Division of the U.S. Census Bureau. The division said the decline actually took place between 1980 and 1985, with the rate stabilizing in the latter half of the decade. Officials attributed the decline to broad social and economic changes. COMMERCIAL MORTGAGES COSTLIER: Mortgages on commercial properties are rising, according to the October issue of Real Estate Today magazine. To get a loan, borrowers must pay for an environmental assessment report. This report is not related to the dollar value of the property, and can cost around $3,500. If a problem is discovered, the borrower also pays for cleanup. SQUABBLES LEAVE TRAFALGAR OPEN: Trafalgar House Plc is not prepared to fight off a hostile takeover by Hongkong Land Holding Ltd. because of a growing rift inside the U.K. conglomerate's senior management, Bloomberg Business News said Sunday. Management fought over the sale of Trafalgar's leisure division, including the famed Ritz Hotel in London, earlier this year. MORTGAGE PASSTHROUGHS DROP: Prices of mortgage passthroughs closed lower Friday after the jobs report showed a smaller-than-expected drop in employment in September, delaying a cut in U.S. interest rates. Mortgage passthroughs dropped as much as 3:8 following the employment news. Most traders still believe the Federal Reserve will cut rates soon. RESIDENTIAL COMMUNITY OPENS: Sherwood, a private country-club community near Thousand Oaks, Calif., opened its gates to celebrate its first formal opening and grand opening of two new residential enclaves. Sherwood is the largest concentration of luxury residential real estate ever brought to market at one time in Southern California. The planned community has been valued at an estimated $700 million. ENGLE BUYS CAPITAL STOCK: Engle Homes Inc. said Friday it has purchased all of the outstanding capital stock of The Title Store Inc., of Florida. The Title Store has served as the agent in issuing title policies for most of Engle's home closings since 1983. Engle Homes is engaged in the design, construction, marketing and sale of single family homes, townhomes and condominiums in Florida communities. SPECIAL PACKAGE ON BILL: BILL ESTABLISHES REGULATOR: A bill passed by the House of Representatives Friday establishes an independent regulator for Fannie Mae and Freddie Mac within the Department of Housing and Urban Development. The bill also sets goals and targets for purchases of low- and moderate-income mortgages by the two enterprises. The bill is expected to be considered by the Senate this week. WHITE HOUSE SUPPORTS BILL: The Bush administration supports the measure, as do Fannie Mae and Freddie Mac. Both enterprises have over $900 billion of securities outstanding, most of which are mortgage-backed securities for which Fannie Mae and Freddie Mac guarantee timely payment of interest and principal. Many investors assume the government would aid an enterprise in financial straits. SOME SAY BILL IS NOT ENOUGH: During debate on the House floor, Rep. Jim Leach (R-Iowa) and Rep. J.J. Pickle (D-Texas) said the compromise bill was too weak, given the potential risk the enterprises pose to the taxpayer. The bill sets three capital standards and requires 30% of mortgages purchased by Fannie Mae and Freddie Mac be from low- and moderate-income housing. (End of package.) Real Estate Editor: Martin Baucom. (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