Daily Archives: September 8, 2013

Lenders Loosen up as Refis Tank | Mt Kisco Real Estate

In July, lenders loosened up their underwriting standards more than they have in yeas as purchase mortgages overtook refinancing as the leading source of mortgage originations according to Ellie Mae’s July Originations report.

“In July, the mix of purchase loans to refinances was 53% versus 47%: the largest percentage of purchase loans since we began tracking the data in August 2011,” said Jonathan Corr, president and chief operating officer of Ellie Mae. “This was a further indication that housing seems to be improving. Just six months ago, 73 percent of all mortgages were refinancings.

“Credit standards continued to ease in July,” said Corr. “The average FICO score fell to 737, from 742 in June 2013, and it is now at the lowest level since we began our tracking in August 2011. Similarly we saw slight increases in both loan-to-value and debt-to-income ratios last month-signs that lenders are willing to accept slightly more risk to maintain volume. Dent to income ratios also have risen to the highest level since Elli Mae began tracking mortgage data in February 012.

To get a meaningful view of lender “pull-through,” Ellie Mae reviewed a sampling of loan applications initiated 90 days prior (i.e., the April 2013 applications) to calculate an overall closing rate of 55.4% in July 2013, up from 54.3% in June 2013.

MONTHLY ORIGINATION OVERVIEW FOR JULY 2013

July 2013*

June 2013*

6 Months Ago
(January 2013)*

1 Year Ago
(July 2012)*

Closed Loans

Purpose

Refinance

47%

51%

73%

58%

Purchase

53%

49%

27%

42%

Type

FHA

19%

19%

18%

24%

Conventional

71%

71%

74%

67%

Days to Close

All

47

47

54

48

Refinance

48

47

55

48

Purchase

46

46

51

47

ARMs vs. Fixed, Length, Rate

ARM %

5.2%

4.0%

2.1%

3.1%

15 Year %

15.5%

16.5%

16.9%

15.3%

30 Year – Note Rate

4.357

3.918

3.634

3.870

*All references to months should be read as month ended.

PROFILES OF CLOSED AND DENIED LOANS FOR JULY 2013

Closed First-Lien Loans

Denied Loans

(All Types)

(All Types)

FICO Score (FICO)

737

702

Loan-to-Value (LTV)

81

84

Debt-to-Income (DTI)

24/36

28/44

 

 

 

 

Lenders Loosen up as Refis Tank | RealEstateEconomyWatch.com.

Instagram Marketing: How to Get Started With Instagram | South Salem Real Estate

 

Do you use Instagram for your business?

Are you wondering how Instagram can help with your marketing?

To learn how to get started with Instagram marketing, I interview Sue B. Zimmerman for this episode of the Social Media Marketing podcast.

More About This Show

Social Media Marketing Podcast w/ Michael Stelzner

 

The Social Media Marketing podcast is a show from Social Media Examiner.

It’s designed to help busy marketers and business owners discover what works with social media marketing.

The show format is on-demand talk radio (also known as podcasting).

In this episode, I interview Sue B. Zimmerman, who is known as theInstagram Gal. Sue helps businessesuse Instagram to find their ideal customers. She’s used Instagram herself to increase traffic to her Cape Cod retail boutique by 40% in only 12 months.

Sue shares the strategy behind her Instagram success.

You’ll learn how to take advantage of using photos and short videos and how tomake the most of hashtags.

Share your feedback, read the show notes and get the links mentioned in this episode below!

Listen Now

You can also subscribe via iTunesRSSStitcher or Blackberry.

Here are some of the things you’ll discover in this show:

Instagram Marketing

Why marketers should consider Instagram

Sue states that she didn’t know what Instagram was until a little over a year ago. She became curious when her twin daughters were using it.

Sue shares that one of the reasons why marketers should consider Instagram is because it’s mobile. It’s a great way for your business to communicate directly with people with whom you want to build trust and credibility. There’s no better way for people to see what you are up to.

sue b zimmerman instagram

Instagram is a great way to share with people what you are doing in the moment.

Instagram is a free mobile app, which you can download onto your iPhone orAndroid phone. It allows you to share photos or videos with your target market. It’s very quick, easy and fun to use. There are 20 filters that you can have a lot of fun with.

You’ll discover why hashtags and @mentions are most important for marketers and businesses.

Listen to the show to find out what type of image gets the most likes and comments for Sue.

Who is Instagram ideally for and how does it differ from Pinterest?

Sue believes they are similar but have slightly different approaches. Sue has a very active Pinterest account, which is also very successful for her boutique.

Both Pinterest and Instagram have grown into their own thriving communities.

With Instagram, you can tell a story with both photos and videos. As soon as you upload an Instagram image, you can see within seconds that someone has liked it. With Pinterest however, you tell people what you like. You curate your boards and highlight what you like from things that are already online.

in the moment sue zimmerman

With Instagram, it’s you in the moment.

Sue gives an example of how she is able to seize opportunities presented to her with customers in her boutique. It’s a great way to create a fun mood.

The hashtags that you use to describe the image or the video are how people follow you or find you.

You’ll hear what hashtags Sue uses at an event and why it helps create more interaction. You have to remember that people look for certain hashtags for their industry to stay top of mind.

falmouth roadrace

Make sure you tag the event you are attending to create more interaction.

From a business perspective, when an image grabs your attention, you can choose to click into the account and see if you want to follow the person. Once you start to follow an account, it will show up in your feed. You can also unfollow accounts at any time.

Sue believes that she can put a visual strategy together for any kind of business. You’ll hear the different types of businesses she has worked with.

In the B2B world, it’s not necessarily about the products you sell, it’s about visual feelings. Images of sunsets, nature and oceans get a lot of likes because they are visually pleasing. It’s not just about business.

Listen to the show to find out what the benefits are when you share your passions visually as an individual.

Examples of businesses that use Instagram well

One of Sue’s favorite businesses is Birchbox. They have over 50,000 followers and are super-creative with their products. One of the products is a subscription-based box of goodies, which is delivered to your door once a month for $10.

 

Instagram Marketing: How to Get Started With Instagram | Social Media Examiner.

Price appreciation picks up in emerging real estate markets | Bedford Hills Real Estate

The release of the latest S&P/Case-Shiller Home Prices Indices turned out to be anticlimatic as rising mortgage rates spooked the market a bit, causing home price appreciation to subside a bit in key markets.

On the other hand, markets once considered ‘struggling’ saw their prices soar.

The June S&P Case-Shiller report, while still impressive, fell slightly showing a 12.1% gain in home prices year-over-year. That is still comparable to the 12.2% annual home price gain recorded in May — the largest gain recorded since March 2006.

“Case-Shiller put up some big numbers in June, but more current data shows the pace of monthly home value appreciation slowed in both June and July, likely as a result of mortgage rate increases,” said Zillow (Z) Chief Economist Dr. Stan Humphries. “We expect even the Case-Shiller index will begin to show this trend when its July data finally comes out in September, but it will be more muted since the index is looking at a three-month average.”

There are two main drivers in the housing industry right now: consumer demand and interest rates, said Quicken Loans chief economist Bob Walters. “Despite rising rates and higher home prices, consumers continue to buy. Today’s 7.1% increase in the second quarter suggests the housing market is improving, supporting the U.S. economic recovery,” he explained.

But what really stood out to some observers is how once outperforming cities are starting to see home prices subside.

“What we are seeing is that the cities that are spiking the most are not Washington D.C., which is really interesting,” said Anthony Sanders, professor of finance in the school of management at George Mason University. Sanders implied that once thriving markets have since leveled off.

On the other hand, markets once doing far worse are starting to see substantial improvement.

Atlanta saw the most home price growth, up 3.4% in June, with Chicago close behind with a 3.32% gain. Las Vegas and San Diego followed with 2.8% and 2.79% monthly gains, respectively. Sanders runs his own blog in which he goes deeper into the data. Washington D.C. grew at a more mild 1%.

The emergence of once distressed markets became clear as cities like Las Vegas saw rapid price appreciation.

“In terms of annual rates of change, San Francisco lost its leadership position with Las Vegas showing the highest post-recession gain of 24.9%,” said David Blitzer, chairman of the index committee at S&P Dow Jones Indices.

According to Sanders, this is an indication that speculators are starting to pull out of the West Coast cities and move into markets that have yet to reach such high home prices. “It has to be investors driving this up,” he said. “This is an unusual switch.”

 

 

Price appreciation picks up in emerging real estate markets | 2013-08-27 | HousingWire.

House Cleaning Service Costs | Bedford NY Real Estate

t’s a magical feeling to open your door and find your home all clean and smelling fresh. Like Samantha from “Bewitched” just wiggled her nose and, voila, everything shines. A reliable cleaning service can do wonders not only for your home but your state of mind. But keep in mind that the value cleaning services offer may go beyond polished floors and spotless toilets. Sparkling windows, pollutant-free ducts and clear gutters and downspouts are critical to home maintenance as well. How much you’ll pay for a cleaning service often depends on the extent of the cleaning job and the specialized services needed.
Maid Service

The most significant factors affecting the cost of any interior house cleaning or maid service are the number and size of your rooms, whether you own pets, and how often you schedule your cleanings. Many maid services will charge you less per cleaning if you have them come once a week rather than once a month. Some companies will charge more for specialty services, such as window washing, fireplace cleaning, dusting shelves where a large number of books need to be removed and replaced, and cleaning high shelving or ceilings that require a ladder. Some services also will add a trip charge if you live far away from their place of business.  Continue Reading


Select your Cleaning Service project


                Exterior Cleaning

                There’s a reason people talk about spring cleaning. During the winter, your property might be covered in snow, and doing exterior cleaning is nearly impossible. But once the snow is melted, you may find your home’s exterior and much of your property looking messy. Depending on the company (or independent contractor) external home cleaning and lawn and garden clean-up may be charged by the scale of the project or by the hour. An experienced cleaning service should be able to give an accurate price quote before beginning the job.

                 

                 

                House Cleaning Service Costs | Cleaning Service Prices.

                Rustic Lakefront Living in Northern California for $29M | Pound Ridge Real Estate

                Location: South Lake Tahoe, Calif.
                Price: $29,000,000
                The Skinny: Despite an address in the town of South Lake Tahoe, this 77-acre wooded property actually fronts on the much smaller Fallen Leaf Lake, a pristine glacial lake that lies a mile south of Lake Tahoe. Equipped only with a rustic cabin that dates to the 1920s, the property has been listed for a whopping $29M. Of course, one would expect that a buyer with eight-figure budget will build a monstrosity on the property—like the nearby Lake Tahoe estate that once wanted $100M—but the pristine land has been subdivided into three lots, meaning developers may take interest too. Those rich folks just looking for a little peace and quiet would also be satisfied with this lakeside retreat. According to the listing, the nearest neighbor is nearly a mile away.

                 

                 

                Rustic Lakefront Living in Northern California for $29M – House of the Day – Curbed National.

                90 Stories Above Manhattan, This Pad Has a 30′ Waterfall | Waccabuc Real Estate

                ODAapt.jpg
                [All renderings by ODA.]

                This apartment, located somewhere 90 stories above Manhattan, is apparently “one of the largest private apartment residences in the United States,” according to the blurb from ODA-Architecture, which handled the apartment’s interiors. We’re not sure exactly when the renovation took place, but we stumbled on it yesterday courtesy of one helpful Curbed tipster, and it’s the kind of apartment that’s worth our attention regardless of timing. The property is 18,000 square feet, with six bedrooms and 12 bathrooms. Then there are the quirkier features, which include a theater and music room, private spa and gym, teahouse, 2,000 bottle wine room, sculpture garden, and 30′ waterfall with reflecting pool. Each of those amenities deserves to be followed by an (!) or two. And the archibabble reveals a little bit more:

                With a perimeter of 16′ foot floor- to-ceiling windows, the essence of the apartment is the sculpture garden at its entrance. The garden features a spectacular 30′ water wall and reflecting pool overlooking the famed United Nations headquarters along the East River. This superlative dwelling also features a 75′ expanse of living and dining area along with a Italian kitchen, library, game room, day spa, home theater and professional grade listening room with recording studio.

                ODAapt2.jpg

                ODAapt3.jpg

                The ODA listing for the project does not, of course, disclose the apartment’s owner. Our tipster wonders if the apartment in question is the three-unitpenthouse duplex at Trump World Tower, which sold back in 2007 for $33.654 million. The square footage doesn’t quite add up, though—anyone have any insight?
                · Private Residence [ODA]
                · Trump World Tower coverage [Curbed]

                 

                 

                90 Stories Above Manhattan, This Pad Has a 30′ Waterfall – Renovations – Curbed NY.

                Home Security Systems and Alarm Systems | Cross River Homes

                Doors

                Home security systems are only as strong as their weakest link, and if you set up equipment that’s too complicated for household members to use, they are likely to ignore the equipment or work around it. Remember that the people in your home are part of any security arrangements you make, so you have to be realistic about how much hassle they are willing to accept in the name of security.

                1. Be sure your home appears occupied.

                Most thieves are opportunistic. They come into a neighborhood and look for houses that seem undefended and unoccupied. An important part of home security is making your home look occupied at all times.

                One big clue that you are out of town is if your mail or newspapers are piling up. Never allow newspapers to accumulate in the front yard.

                Interior lights are also important in making a home look occupied. Not only should some lights be on, but the array of lights should change just as it would if the home were occupied. The easiest way to do this is with timers.

                Another very simple way to make a house appear occupied is to leave on a TV or radio with the volume turned up loud enough to be heard by someone approaching the doors or windows.

                Leaving a car in the garage or driveway can also be a deterrent. If you are going on a trip and not leaving a car at home, you might want to make arrangements with the next door neighbor to park one of their cars in your driveway while you are away.

                2. Create perimeter defenses.

                Another important home security measure involves making it difficult to get near the home. This is most commonly accomplished by a high wall or fence.

                In many parts of the world, this is the primary home security tactic, but it does suffer from some shortcomings. Generally, it is easier to sneak undetected over or under a wall or fence than it is to force entry into a home.

                Yet perimeter defenses often give occupants of the home a false sense of security that may lead them to get sloppy about locking doors and windows. For this reason, perimeter defenses are most effective when they are either very difficult to penetrate or are augmented by cameras and/or motion detectors.

                3. Be sure all entrances are well lit.

                For most homes, perimeter defenses like walls and fences are of little use. Most people assume that the next line of defense is doors and windows, but there is something that comes first. It’s based on the simple fact that thieves want to do their work where no one can see them. This means you want to make sure the outside of your home is well lit – especially at any potential points of entry. An effective solution is motion detector lights. These inexpensive devices can be set up to turn on whenever something moves near it.

                4. Install deadbolts and peepholes on doors.

                Most home security measures are concentrated on doors. With doors, the two main issues are structural integrity and locks.

                Recommended for exterior doors, deadbolt locks are substantial locks that lock the door into the frame. Deadbolts come in keyed versions, which always require a key, and levered versions that only require a key to open from the outside. If no glass is nearby, the lever version is best as it is more likely to get used.

                There are many facets to your ensuring your personal home security. Click this link if you want to use our free service to have any of our prescreened home security contractors install home security measures.

                Sliding glass doors present a special challenge. Most are vulnerable to breakage. The simplest security enhancement is to place a metal bar or broom handle in the inside floor track. Some sliding doors can simply be lifted out of their tracks. There are screws at the top and bottom of the inside of the door that control how it sits in the track. Adjust these so that the door cannot be lifted so high that the bottom comes free from the track.

                Every front door should be equipped with a peephole. This is a very inexpensive, easy to install device that allows you to check out a visitor before you open the door. For the same reason, an intercom can allow you to communicate with a caller before deciding whether to open the door or deactivate an alarm.

                5. Secure your home’s windows.

                While your home may only have two or three doors, it may have a dozen or more windows. Burglars know that if you systematically check all the windows in a house, there is a good chance that at least one will remain unlocked.

                Most standard window locks are very simple to jimmy or force. Heavier locks will improve your home security quite a bit. Another simple, inexpensive tactic that is effective for double hung windows (those with two sliding panels that go up and down or side to side) is window pins. There are specially made pins, or large nails can easily be used.

                6. Remember your home’s other points of access.

                Exterior doors and windows are not the only access points to most homes. Many thefts take place through garages. Besides having valuable items stolen from the garage, the door that goes from the garage to the house is often unsecured or not substantial enough to stop a burglar.

                Check also to see if skylights, crawl spaces, attic vents, and other openings may provide burglars with unrestricted access to your home.

                7. Consider installing an alarm system.

                Alarm systems offer little in the way of physical obstacles to thieves. Instead they offer an important psychological one.

                In a neighborhood with an efficient police force, the alarm substantially increases the odds that the thief will get caught. Even in areas where police response times are slow, the noise and attention of an alarm may well dissuade the burglar from finishing his mission.

                The cost of alarm systems varies widely. A burglar easily can disable some of the simpler, less expensive detection devices. The more complex and unfamiliar the array of devices, the more likely the burglar is to trigger the alarm or give up trying to disable it.

                Response times to alarms are driven by several factors. First is the effectiveness of the monitoring service you’re using. When considering a monitoring service, get the names of people who have had the opportunity to observe response times in the past.

                The second factor is the protocol you request that the monitoring service use. Who do you have them call in what order? In some cases, you might do better to alert a helpful neighbor than to alert an unresponsive police force.

                The third factor is the 911 services in your area. Most work well and a few don’t. While you have no direct control over the 911 services, you may be able to draw attention to the problem and seek a solution through the political process.

                8. Keep a record of your valuables.

                Most area police departments encourage homeowners to etch their social security number on the metal surfaces of valuables that are prone to theft. When police come across marked stolen merchandise, they can easily find the true owner and return it. Photographs of especially valuable items like artwork and antiques can help police recover goods.

                Read more: http://www.homeadvisor.com/article.show.8-Steps-to-Better-Home-Security.10577.html&m=homesense&entry_point_id=26787158#ixzz2eKGOwoCN

                 

                 

                 

                Home Security Systems | Alarm Systems.

                Living Off the Grid and Thriving! | Katonah NY Homes

                Michelle and Cam are living off the grid entirely at Sunflower Farm, their homestead in Eastern Ontario.

                PHOTO: CAM MATHER

                 

                More than a decade ago, my wife, Michelle, and I moved from a busy suburban street to 150 acres in the Ontario bush, where our nearest neighbors are three miles away. Ditto for the nearest utility pole. We’d transitioned to living off the grid with little knowledge about renewable energy — or electricity, for that matter — and had to quickly put into practice our home-schooling mantra of “lifelong learning.”

                To say that the learning curve was steep is an understatement. Back then, there were no good books on the subject of renewable energy for homes, and the information you could find was pieced together by pioneers who were learning as they went along. Consulting with any local electrician was a waste of time, so we learned by the seat of our pants. Luckily, we developed a network of helpful and skilled friends along the way. We came to realize that the more things we learned to do ourselves, the more independent we would become, which is the theme of the book I’ve just written, Thriving During Challenging Times: The Energy, Food and Financial Independence Handbook.

                As we begin to experience the converging challenges of resource depletion, climate change, and the ongoing financial crisis, we need to make ourselves more resilient to shocks to the system.

                If you do decide to go off the grid, generating your own electricity from the sun and wind provides an incredible sense of well-being — not only from a sense of independence, but also from the realization that you aren’t using any electricity that comes from coal. Powering your home with renewable energy is a huge step toward reducing your carbon footprint. We started with a fairly small solar-electric system that the previous owners of our home had installed, and we’ve steadily added more panels. As we learned more about peak oil, we were determined to reduce our use of nonrenewable fossil fuels for both cooking and powering our gasoline generator; there are times when there isn’t enough sunlight or wind to charge our off-grid batteries, so we use a fossil fuel-powered generator as a backup.

                Wonderful Wind, Super Solar

                When we moved in, there was an old wind turbine on a 60-foot tower on our property, but several years ago we decided to replace it with a new Bergey 1-kilowatt turbine on a 100-foot tower. We are surrounded by forests (not optimal for wind generation), so putting up a 100-foot tower set the turbine about 30 feet above the trees to capture some of the stronger winds. We decided to film the installation process and sell a video of it via our publishing company, Aztext. I’m a visual learner, and if I could have watched a video of the process of putting all the pieces of our off-the-grid system together, it would have made our efforts go more smoothly.

                The new turbine required us to upgrade our battery bank from a 12-volt to a 24-volt system, so we also upgraded our inverter and added more solar panels. In the previous year, we ran our backup generator about 15 times. In the year after we put up the turbine and added solar panels, we ran the generator just twice. This means that, on many days, we now have extra electricity to use for cooking, offsetting our propane use.

                Most people who move off grid just move onto propane, substituting propane for all their major heat loads, such as cooking and heating water. We already heat with wood cut sustainably from our property, so using the electric stove helps reduce our propane use as well.

                The biggest drop in our propane consumption came when we installed our solar hot water system. It uses solar energy to heat water we use for washing and bathing, and should offset about 60 percent of water heating costs. For most people, this should be the first solar panel they put on their roof, because the payback is much faster than that of photovoltaics. There’s nothing nicer on a cold winter evening than soaking in a bath with water that was heated all day by the sun. After the system is paid for, there are no additional costs, and there are no carbon dioxide emissions created by the energy that heats the water. It’s an incredible, guilt-free luxury.

                Many utilities now offer incentives to integrate renewable energy technologies, and with faster paybacks on your investment, you can take the savings from these systems and pay down debt. This was one of our keys to being able to move where we did. We scrimped, saved, and paid off our old mortgage before we left the city. Financial independence allows you to capitalize on the opportunities that will present themselves in the future.

                Read more: http://www.motherearthnews.com/print.aspx?id={47AF2418-0348-4C83-A164-280F2EF9170C}#ixzz2eKFnTFTK

                 

                 

                Living Off the Grid and Thriving! – Homesteading and Livestock – MOTHER EARTH NEWS.

                How the truly smart home could finally become a reality | Bedford Corners Homes

                The promise of the internet of things (IoT) is currently one of the most-hyped trends in technology circles. Back in 2010, Hans Vestberg, CEO of telecom giant Ericsson, boldly predicted that by 2020, 50 billion devices would be connected to the internet. The growing proliferation of connected consumer electronics, the falling costs of cellular-embedded modules and airtime, shrinking chip prices, and the emergence of wireless technologies such as Wi-Fi, ZigBee, and Z-Wave drove this optimism.

                The IoT is regularly associated with home automation; however, the market for home energy management systems and smart appliances, which many expected to track the rollout of smart meters and to give rise to truly connected homes, have both failed to take off. Today, many of these products are still involved in small pilot programs. The arrival of a number of glitzy cloud-enabled gadgets like Belkin’s WeMo line and the Nest Learning Thermostat could accelerate things rapidly. These devices, however, aren’t truly IoT; they are connected to the internet but remain isolated from one another.

                For the smart home to ignite the IoT, home automation software platform vendors must provide open APIs. SmartThings and future open-API platforms could be the disruptive players that encourage a tidal wave of interconnected things.

                Key findings from our analysis include:

                • Do-it-yourself (DIY) kits and high-end luxury installations are creating competition across previously separated home automation sectors. This, coupled with cloud-based services and general-purpose controllers built on apps, is driving much growth. Meanwhile, service providers like telecommunications companies (telcos) and utilities are raising category awareness with low-cost offerings.

                • Extensible software platforms from the likes of Alarm.com, iControl, and AlertMe mean that service providers can introduce new services to end customers over time. A home security-focused solution, like Comcast’s XFINITY Home package, easily can be extended to incorporate home energy management or home health capabilities. Open-API platforms would accelerate this extensibility and enable even more competition.

                • Currently the largest segment, custom-designed smart home systems will grow at only a 7-percent rate, compounded annually, to $2.2 billion in 2017. DIY kits will grow much faster but still only reach $200 million in annual sales by then. In contrast, connected home systems will explode from a $300-million base to $1.5 billion in 2017.

                 

                 

                How the truly smart home could finally become a reality — GigaOM Pro.

                Is a 20% downpayment a life saver, a curse or just an arbitrary number? | Chappaqua Real Estate

                Former Congressman Barney Frank is now well-retired from the U.S. House, but his aggressive legislative personality lives on, with fights still erupting over Dodd-Frank—the signature piece of mortgage finance legislation that Frank helped draft to reform the housing market and the entire U.S. economy.

                One of the standards drafted — the qualified residential mortgage rule – received a facelift in August when new proposals hit the market, suggesting Dodd-Frank’s 20% downpayment requirement for lenders who want to obtain an exemption from risk-retention requirements is simply too high.

                As a result, the August proposal, which is largely endorsed by the mortgage finance space, suggested that a loan already considered a qualified mortgage under theConsumer Financial Protection Agency’s definition can escape risk-retention scrutiny, which essentially tramples over the 20% downpayment requirement Dodd-Frank originally envisioned.

                But the debate continues, with writers for The Washington Post unleashing a fury by publishing an editorial that accuses financial regulators of capitulating to the will of bankers. The writers attack the proposed QRM rule change, saying:

                Two years ago, federal banking regulators proposed to require a 20 percent down payment as one of the criteria of qualified loans. This was consistent with the intent of Dodd-Frank, and with the economic literature, much of which identifies low equity as a reliable predictor of homeowner default. But the requirement was quite inconsistent with the interests of a wide range of lobbies — from real estate agents to low-income-housing advocates — which protested that the rule would unduly limit access to credit and kill the housing recovery. The groups swarmed the regulators; hundreds of members of Congress from both parties wrote in support of them. And so, in the dog days of August this year, the regulators backed down, offering a revised rule that requires no down payment at all.   

                The article views the proposed changes as retro and a step backwards. It also raises one of the oldest questions in the industry: does the 20% downpayment requirement really keep a borrower performing or is it something else? At a time when few can save 20% down, the industry fears a virtual freeze-out of many potential homebuyers with such onerous requirements.

                 

                 

                Is a 20% downpayment a life saver, a curse or just an arbitrary number? | REwired.