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FICO announced on Friday (8/8) that under a new system, it will begin ignoring paid collection accounts and place less emphasis on unpaid medical bills when calculating credit scores. Those consumers whose only major black marks are unpaid medical bills could see their credit scores rise by as much as 25 points according to the company. However, if you have unpaid collections, judgments or late payments - sorry, FICO will still penalize you for that.

The bigger challenge is Fannie Mae and Freddie Mac are planning not to use the new score in evaluation loan applicants for the foreseeable future (heck they haven't even adopted FICO 8 yet). Though, FICO 9 may sounds good on the surface, majority of homebuyers will not benefit as anticipated.

Posted in:General
Posted by Sam Kader on August 12th, 2014 9:04 AM

The act was enacted in 2007 that allows qualified owners who receive debt cancellations from lenders through short sales, foreclosures and loan modifications to be exempt from the federal tax code's standard requirements. Any amount of debt that is forgiven by a creditor generally is treated as ordinary income to the borrower taxable at regular rates.

The act expired on December 31 2013 and with the expiration of the debt-forgiveness stature - owners who do short sales this year cannot be certain that they will avoid taxation of their forgiven mortgage debt.

If Congress fails to renew it retroactively to Jan. 1st, there is a real possibility that short sellers in mort parts of the country will face hefty income-tax hits in 2015. Short sales have plunged from 11% to 4% this spring with some potential short sellers opting for chapter 7 bankruptcy instead.

The current bill is in the Senate Finance Committee as part of a larger extenders package of tax benefits for a variety of special interests from wind energy to research and development credits. The Senate Majority Leader refused to allow an amendment that would have killed a controversial 2.3% excise tax on medical devices that provides a funding source for the Affordable Care Act. There is no scheduled date for consideration of mortgage forgiveness. However, Congress may retroactively extend the debt-forgiveness law late this summer or even next spring. But don't hold your breath!

Posted in:General
Posted by Sam Kader on June 15th, 2014 10:49 AM

Pacific Coast  Financial LLC

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Key Mortgage Rate Indicators Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
30 Year FNMA Consumer Rate 4.875% 5.000% 5.062% 5.125% 5.250% 5.365% 5.500% 5.543% 5.625% 5.750% 5.855% 5.895%
Fannie Mae Benchmark Coupon 4.000 4.000 4.000 4.000 4.000 4.250 4.250 4.250 4.250 4.250 4.250 4.250
10YR Treasury Note Yield 2.950% 3.050% 3.070% 3.150% 3.180% 3.200% 3.250% 3.300% 3.350% 3.400% 3.450% 3.500%
Federal Reserve Monthly QE Purchases $75B $65B $65B $55B $55B $45B $45B $35B $35B $35B $25B $25B
Key Economic Indicators Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
GDP 2.20% 2.20% 2.20% 2.50% 2.50% 2.50% 2.62% 2.62% 2.62% 2.80% 2.80% 2.80%
Non Farm Payrolls 135K 160K 140K 110K 120K 140K 165K 185K 140K 120K 120K 120K
Unemployment Rate 6.70% 6.67% 6.65% 6.67% 6.65% 6.62% 6.59% 6.58% 6.58% 6.57% 6.57% 6.55%
Consumer Price Index 2.30 2.30 2.30 1.70 1.80 1.90 2.00 2.00 2.00 2.00 2.00 2.00
Housing Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Existing Home Sales (units) 5.000M 5.001M 5.055M 5.100M 5.125M 5.132M 5.175M 5.200M 5.250M 5.255M 5.260M 5.267M
New Home Sales (units) 460K 470K 474K 480K 490K 501K 525K 535K 544K 555K 565K 575K
Median Home Price (Existing) 185K 186K 188K 195K 205K 214K 215K 216K 217K 212K 208K 204K
Median Home Price (New) 255K 258K 261K 265K 268K 273K 273K 273K 274K 273K 272K 272K
Housing Starts 1M 1.01M 1.015M 1.025M 1.055M 1.075M 1.10M 1.12M 1.145M 1.16M 1.18M 1.2M
Refinances as % of Originations 50% 49% 48% 44% 39% 36% 36% 35% 35% 34% 33% 32%

Employment - one of the key elements in driving home purchases. Here in Washington state - 2013 ended with an additional 4,800 jobs statewide pushing down the unemployment rate to a five-year low of 6.6%. The Seattle area which includes Bellevue and Everett added 10,100 led by hiring in service-sector businesses (mainly in aerospace and high-tech).

Posted in:General
Posted by Sam Kader on January 17th, 2014 6:23 PM

Here were the asking monthly rents for a one bed-room, one-bath apartment in November 2013, before landlord concessions, ranked by city population.

Apartment rents in the Seattle area rose faster than in any other 81 major U.S. metros. Rents here grew twice as fast as the national average of 2.6 percent led by booming local job growth.

Top annual increases in rent

Rents asked by landlords as of June 2013

1. Seattle: 6.0 percent, to $1,150

2. Nashville: 4.2 percent, to $815

3. San Jose: 4.2 percent, to $1,698

4. Houston: 4.1 percent, to $853

5. San Francisco: 4.0 percent, to $2,070

6. Portland: 3.9 percent, to $905

Source: Seattle Times analysis of Reis data

The vacancy rate in King County last spring was 3.32% - the lowest since 1998, and about 42% of housing units were renter occupied in 2011. In Seattle 54% were renter occupied. Current demand for apartments in the Seattle area is stunning. There were 10,034 more occupied units in June than a year earlier putting the region second only to Houston in the umber of units added over the past year. Check out if you are paying an average rent.

Posted in:General
Posted by Sam Kader on January 2nd, 2014 8:04 PM

Despite the shutdown and near-miss of debt default, the world still runs on the U.S. dollar for one very simple reason - there is no better alternative. The yield on 10 Year US Treasury closed at 2.58% on 10/18 and was never higher than 2.73% during the shutdown. This yield is a benchmark for mortgage rates.

No other world currencies provide liquidity, transparency, affordability, acceptability, and security worldwide as the US greenbacks.  Our politicians have been trying very hard to ruin America's reputation. But - so far they have not been able to do it yet.



Posted in:General
Posted by Sam Kader on October 19th, 2013 11:53 AM



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