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 Tue, Oct 20 1992 Date: Tue, 20 Oct 92 04:35:16 EDT Message-ID: 10-20 0000 DECISIONLINE: Real Estate USA TODAY Update Oct. 20, 1992 Source: USA TODAY:Gannett National Information Network FANNIE MAE UNVEILS NEW PROGRAM: Federal National Mortgage Association, the nation's largest home mortgage investor, Monday unveiled a program to increase the availability of mortgage credit in low- and moderate-income urban areas. The new program, called "FannieNeighbors," is similar to the Community Home Buyer's program Fannie Mae introduced in August 1991, but the new program targets specific neighborhoods. (For more, see special Fannie package below.) GOODKIN COUNTS ON CALIFORNIA: Real estate guru Sanford R. Goodkin notes in his third quarter 1992 "Goodkin On Real Estate," that national recovery will depend on a resurgence of the California economy. Goodkin says California's recovery is slow and will be prolonged. Asian investors continue to pour tens of millions of dollars into California real estate - positioning themselves for future profits. MARKET MIRED IN UNLEASED SPACE: Sanford R. Goodkin, who believes that the California economy will lead the nation into recovery, says California's commercial real estate market is mired in unleased space. He also says Resolution Trust Corp. sales inhibit price stability and investment. Appraisal values are fluctuating and continue a downward trend, according to Goodkin. MOST COMPANIES COMPLIED: The vast majority of homeowners' insurance companies complied with Florida's Oct. 15 guideline requiring adjustment of claims arising from Hurricane Andrew, State Treasurer and Insurance Commissioner Tom Gallagher said Monday. Gallagher said 481 insurance companies, 84% of the total market, reported compliance with the Oct. 15 deadline. LANDLORDS USE CREDIT HISTORIES: With everyone rushing to buy houses, refinance their homes or take out loans for other purposes, credit bureaus are busier than ever. Anyone who has ever received a loan or used a major credit card has a credit report, according to Mastercard International. Members of the Associated Credit Bureaus Inc. have access to all credit histories and they are used by landlords when renting. MORTGAGE LOANS ARE RESTRUCTURED: American Health Properties Inc. said Monday it will restructure its mortgage loans to the owners of the Four Winds Hospital in Katonah, N.Y., and the Rock Creek Center in Chicago. The real estate investment trust said that under the agreement with the Four Winds, the $61.2 million, 12.5% first-mortgage loan will be reduced to $28.4 million. The trust will lease Rock Creek to the operator. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.01% Monday, unchanged from Thursday and unchanged from 8.01% the week before. They were at 8.82% a year ago. For 30-year adjustable-rate mortgages, the rates were 4.97%, unchanged from Thursday and unchanged from 4.97% the week before. A year ago they were at 6.71%. ARM INDEXES INCREASE: The one-year Treasury ARM index rates were listed at 3.26% Monday, up from Thursday and up from 3.09% the week before. A year ago they were at 5.33%. For the 11th District ARM index, rates were at 4.874%, unchanged from Thursday 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 Monday, listing at 7.57%. That's up 0.07 from rates of 7.50% Thursday. Rates were not available from the week before due to the Columbus Day holiday. A year ago T-bonds were at 8.07%. SPECIAL PACKAGE ON FANNIE: PROGRAM COMPLIES WITH BILL: Fannie Mae Friday announced a new program called FannieNeighbors that will comply with a bill recently passed by Congress, while taking on little credit risk. The program is available to home buyers who live in areas where minorities comprise at least 50% of the population or areas with a median family income of no more than 80% of that of the metropolitan area. STANDARDS WILL BE MORE LENIENT: Fannie Mae will buy mortgages originated by local lenders. The underwriting standards for them will be somewhat more lenient than those for standard mortgages bought by Fannie Mae. Families with incomes up to 115% of the area median could qualify for mortgages with as little as 3% of their own funds for a down payment. The mortgages must carry private mortgage insurance. NEW SEARCH FOR CREDIT HISTORY: FannieNeighbors allows housing expenditures to equal 33% of a borrower's gross monthly income and total expenses to equal about 40% of gross monthly income. A borrower's credit history can be demonstrated by regular payments to utilities and landlords. A recent bill passed by Congress says 30% of mortgages purchased by Fannie Mae and Freddie Mac must be for below-median 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