Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Thu, Apr 23 1992 Date: Thu, 23 Apr 92 05:38:05 EDT Message-ID: 04-23 0000 DECISIONLINE: Real Estate USA TODAY Update April 23, 1992 Source: USA TODAY:Gannett National Information Network RTC COMPUTER SYSTEM A MESS: The Resolution Trust Company was so eager to start up a computer system to monitor its vast real estate holdings that it ended up with a botched system that's costing taxpayers millions to fix, according to RTC auditors. They say the system didn't meet "user requirements" and didn't contain all the internal controls needed, nor was it properly tested - among other problems. (For more, see special RTC package below.) SINGLE-FAMILY SALES SHOULD GROW: An improving economy and increasing enthusiasm among trade-up buyers likely will help spur a slight gain in single-family resale activity for the rest of 1922, according to National Association of Realtors economists. A recent report in Realtor News had economists predicting in late March that sales will total almost 3.5 million units. That's up from 1991's home resale total of 3.22 million. INVENTORIES THIN OUT: In some home markets, particularly in the Midwest and West, increased single-family home resales means that inventories of existing single-families are thinner, say a number of presidents of state associations of Realtors. "In some areas of (Iowa), there are just no houses on the market," says Iowa Association of Realtors' J.R. Stradt. That's pushing some prices up dramatically. FANNIE, NBA JOIN FORCES: A joint initiative between Fannie Mae and the National Bankers Association aims at improving minority home ownership opportunities and revitalizing urban communities. NBA member banks will send into urban communities information about Fannie Mae's affordable-housing finance options. NBA is a trade association for commercial banks owned by women and minorities. Call 202-752-6069 for information. POST OFFICE BECOMES MALL: A former post office in San Francisco has been turned into a shopping mall, reports Philip Bookman of Gannett News Service's Bay bureau. "The city's concern for (Rincon Center's) heritage helped turn (it) into a lovely commercial facility." Preservationists kept the post office lobby intact. now it's a small mall with "modest shops," an atrium and restaurants. MAYOR PART OF DISCUSSION: Mayor Gregory Lashutka of Columbus, Ohio, and a group of real estate advisors, developers and financiers will discuss conditions affecting real estate investment markets in Central Ohio Tuesday afternoon at the Capitol Theater. The discussion will be at a district council meeting of the Urban Land Institute, of which Lashutka is a member. Call 1-800-321-5011 or 202-624-7142. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.76 Wednesday, unchanged from Tuesday but down from 8.84% the week before. They were at 9.47% a year ago. For 30-year adjustable-rate mortgages, the rates were 6.11%, unchanged from Tuesday but down from 6.15% the week before. A year ago they were at 7.37%. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 4.14% Wednesday, unchanged from Tuesday but down from 4.25% the week before. A year ago they were at 6.26%. For the 11th District ARM index, rates were at 5.800%, unchanged from Tuesday and unchanged also from the week before. A year ago they were at 7.848%. T-BONDS UNCHANGED: Treasury security rates for the 30-year bonds showed an increase on Wednesday, listing at 8.03%. That's up 0.01 from rates of 8.02% Tuesday and up 0.16 from 7.87% the week before. A year ago T-bonds were at 8.27%. SPECIAL PACKAGE ON RTC: INACCURATE DATA ENTERED: The Resolution Trust Corporation was in such a rush to start up a computer system to monitor real estate holdings that it ended up with a costly mess, say RTC auditors. Among other problems, the system "was implemented with inaccurate data" the RTC unexpectedly had to clean up. As of last Aug. 5, RTC had committed an extra $9.5 million to fixing the system. AUDITORS BLAME RTC OFFICIALS: In addition to the extra $9.5 million the RTC had committed to system cleanup, additional "substantial" and costly modifications were planned, according to a recent report from auditors. They blame RTC officials, not the contractors, for the problems and missteps associated with buying and starting up the system. RTC solicited proposals for a monitoring system in mid-1990. LOWEST BID ACCEPTED: RTC wanted a monitoring system that would include a nationwide telecommunications network and a data processing center. The system would keep track of real estate RTC controlled and feed information to headquarters, regional offices and field offices. The auditors accepted the lowest competitive bid of $24.3 million and gave an "unreasonable" 120 days to provide the system, auditors say. `NOT VIABLE' SYSTEM BEGUN: The system, while "not viable," started up May 28, auditors say. RTC officials knew that much of the data transferred to the new system had "significant" inaccuracies, including outdated data on properties' book value and zoning class, but didn't correct the data first because they wanted to meet the deadline. RTC officials say they'll abide by auditor recommendations. (End of package.) Real Estate Editor: Beth Mann. (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