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 12 1992 Date: Mon, 12 Oct 92 04:44:58 EDT Message-ID: 10-12 0000 DECISIONLINE: Real Estate USA TODAY Update Oct. 12, 1992 Source: USA TODAY:Gannett National Information Network HOUSING BILL TO BE SIGNED: President Bush is expected to sign a housing bill that contains provisions to regulate Federal Home Loan Mortgage Corp. and Federal National Mortgage association, banking analysts said Friday. The housing bill also approves existing federal housing programs at $24.3 billion in fiscal year 1993 and $25.4 billion for fiscal year 1994, and regulatory relief of the banking industry is provided. (For more, see special Bill package below.) REAL ESTATE HAMMERS INSURERS: The nation's deep slump in commercial real estate still is hammering many insurers that invested heavily in mortgage loans on those properties. An examination of the financial data of the National Association of Insurance Commissioners by USA TODAY showed that steep losses on mortgage loans were putting some companies in jeopardy. Analysts say the slump won't end any time soon. SURVEY SAYS BAD LOANS SOAR: A USA TODAY survey shows real estate to be a major problem for insurance companies. More mortgages were either delinquent or in foreclosure. Bad loans soared 44% - to $11.5 billion last year from $8 billion in 1990. The estimated value on their foreclosed properties jumped 27% last year to $8.9 billion from $7 billon in 1990. VETO OF TAX BILL EXPECTED: President Bush, fulfilling his pledge against raising taxes again, intends to veto the $27 billion tax bill passed by Congress, according to a White House spokeswoman. The bill includes a move to revive popular mortgage revenue bonds and small-issue industrial development bonds to provide low cost financing for some first-time home buyers and business expansion. OWNERS COULD GET EFFICIENCY AID: Under the energy bill that passed in the waning hours of the Senate session Thursday is a provision giving homeowners help in making their homes more efficient. The Department of Housing and Urban Development will set up a program to give homeowners mortgage financing for energy improvements. Also, industry will develop labels for light fixtures and ratings for windows. EXPERTS URGE FARM POLICY REFORM: Veteran economist and government policy maker Willard Cochrane and foreign trade expert Ford Runge, both of the University of Minnesota, said Sunday that farm policy must be reformed. Biggest problems cited: Farm programs benefit a few hundred thousand large commercial farmers; They do little to promote the economic and social well-being of most rural residents and communities. `WE WILL REBUILD' OKS FUNDS: "We Will Rebuild" approved $125,000 to finance 57 lots for Habitat for Humanity to begin building at least that many homes in South Dade County, Fla. Also at the board of directors meeting Friday, the group approved $75,000 for the "charette" land use study of South Dade and the creation of information and referral centers to help victims get local, state and federal assistance. INSTITUTE SPONSORS EXERCISE: The Institute of Real Estate Management will sponsor a mock disaster emergency preparedness exercise at the Clarion Hotel in Detroit Monday. It will start with three explosions outside, followed by simulated smoke in crowded banquet rooms, rescues of trapped guests, panicky guests running and crawling to safety and burn injuries created by a Hollywood make up artist. TRUST BENEFITS FROM COMPLEX: Real Estate Investment Trust of California reported net income of $2.5 million on revenues of $4.51 million for the third quarter of 1992. At the end of the quarter, the Trust added to its investment portfolio through purchase of a 128-unit apartment complex in Scottsdale, Ariz., for $4.175 million. The complex includes 13 buildings on five landscaped acres with amenities. SPECIAL PACKAGE ON BILL: KEMP OBJECTED TO PROVISIONS: Housing and Urban Development Secretary Jack Kemp previously objected to several provisions of a housing bill that President Bush is expected to sign. Banking and mortgage lobbyists, however, said the Bush administration's enthusiasm for the government-sponsored enterprise and banking portions of the measure will outweigh Kemp's objections to the housing section. BILL SETS CAPITAL STANDARDS: Federal National Mortgage (Fannie Mae) and Federal Home Loan Mortgage (Freddie Mac) buy residential mortgages from banks, thrifts and other originators, replenishing the amount of funds that institutions have to lend to home buyers. The housing bill sets capital standards for the two enterprises and establishes an independent regulator for them within HUD. BILL SETS MORTGAGE GOALS: In addition, the bill sets goals and targets for purchases of low- and moderate-income mortgages by Fannie Mae and Freddie Mac. The HOME program, which matches grants to local governments to develop affordable housing, is authorized for $2.1 billion for fiscal 1993. The HOPE program, which matches grants to help people buy their own units, was authorized at $855 million in fiscal 1993. (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