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 Wed, Oct 14 1992 Date: Wed, 14 Oct 92 04:48:25 EDT Message-ID: 10-14 0000 DECISIONLINE: Real Estate USA TODAY Update Oct. 14, 1992 Source: USA TODAY:Gannett National Information Network FDIC BACKS AWAY FROM PROPOSAL: The Federal Deposit Insurance Corp.'s board Tuesday held off on a proposal to set rigid standards for real estate lending, after receiving heavy pressure from the banking and construction industries. The board did issue general guidelines on real estate lending, and stressed that loans outside the guidelines would be subject to increased scrutiny by examiners. (For more, see special FDIC package below.) SALES OF TEXAS RURAL LAND JUMP: Volume of sales of Texas rural land increased by an estimated 5% during the past year, according to the Real Estate Center at Texas A&M University. Charles Gilliland of the center says rural areas in the state faced early declines in the 1980s and have turned around. He says areas like Dallas, which resisted declines until late in the cycle, are facing few sales and falling prices. BUYERS BEWARE OF UPKEEP: Buyers of homes that have been on the market for a long period need to carefully note if maintenance has been deferred, according to the Home Warranty Association of California. The association also said Tuesday that the buyer should have the seller repair or replace any mechanical systems or major appliances that are broken or not operating properly before the close of sale. SOCKEYE SALMON ARE ENDANGERED: There is a potential controversy brewing over land use in Idaho which could overshadow Oregon's spotted owl:logging industry uproar. Idaho has one last wild sockeye salmon left, and it's in a fish tank at a state fishery. Saving the species could affect agriculture, mining, logging and grazing. The salmon's spawn in seven Idaho national forests and it migrates through three states. FISH SPARKS LAND-USE DEBATE: Idaho Gov. Cecil Andrus, the state Fish and Game Department, and local environmental groups want four dams on the lower Snake River altered to allow easier migration of the endangered pink sockeye salmon. Most experts say dams on the Columbia and Snake rivers kill more than 90% of the salmon. The Forest Service also may make 60% of Stanley Basin public grazing lands off-limits to cattle. FIRM SETS RECORD FOR EARNINGS: Health Care Property Investors Inc. said Tuesday that they have set record levels for both earnings and cash flows for the three and nine month periods ended Sept. 30. Net income for the quarter period totaled $9.3 million and year-to-date net income totaled $26.5 million. The company is a real estate investment trust with investments in 157 health-care related facilities. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.01% Tuesday, unchanged from Monday but down from 8.02% the week before. They were at 8.82% a year ago. For 30-year adjustable-rate mortgages, the rates were 4.97%, unchanged from Monday but down from 5.02% the week before. A year ago they were at 6.74%. ARM INDEXES INCREASE: The one-year Treasury ARM index rates were listed at 3.09% Tuesday. Rates were not available on Monday due to the Columbus Day holiday. Rates were up from 3.02% the week before. A year ago they were at 5.40%. For the 11th District ARM index, rates were at 4.874%, unchanged from Monday and unchanged from the week before. A year ago they were at 6.845%. T-BONDS INCREASE: Treasury security rates for the 30-year bonds showed an increase Tuesday, listing at 7.53%. That's up 0.09 from rates of 7.44% Thursday and up 0.12 from 7.41% the week before. Rates for Monday were unavailable due to the holiday. A year ago T-bonds were at 7.53%. SPECIAL PACKAGE ON FDIC: REGULATIONS WON'T BE SET: The Federal Deposit Insurance Corp. won't set strict regulations with only two options on loan-to-value limits for properties. LTV ratios are the cushion that a lender has when a loan defaults. One approach proposed maximum LTV limits. The other proposed ranges of maximum LTV limits, with each range's low end a benchmark. The FDIC received 1,360 letters, most of which were against the measures. AGENCIES WILL ADOPT GUIDELINES: "We have been on record for two years favoring guidelines over fixed LTV ratios," said James McLaughlin, of the American Bankers Association. "Regulated limits are one-size fits all. They don't fit all markets." But the FDIC and other agencies did decide to issue a regulation requiring banks and thrifts to establish their own internal real estate lending policies. REGULATION WILL BE UNVEILED: The agencies also will issue separate guidelines that include specific loan-to-value ratios for real estate loans. The FDIC will unveil its new real estate lending regulation on Oct. 27. A certain percentage of a bank or thrift's loans would be exempt from the guidelines. The quantity of loans that qualify for the "exempt bucket" will also be determined on Oct. 27. (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