A quick question for all of you:

If you were to choose a different profession, what would it be?

I have a huge interest in journalism, so I'd like to be a reporter. Specifically, I'd like to be a political reporter............covering the White House. ( www.whitehouse.gov ) Now, THAT would be interesting! The election results are fascinating this evening, don't you think?

How about you? What do you want to be when you grow up????

Did you know that legislation has been proposed(HR 3044) to put an 18 month moratorium on the Home Value Code of Conduct (otherwise known as HVCC)?

Through enormous pressure by the National Association of Realtors and the National Association of Mortgage Brokers there has been a bill introduced to put an 18 month moratorium on the HVCC. Some critics have said that NAR was caught sleeping on this issue as they were silent about the ramifications of HVCC until after the fact.

Before you start jumping for joy that HVCC will be stopped, first understand the process. Now that the bill (HR 3044) has been proposed it has gone to committee - in this case the bill is in the House Committe on Financial Services. It is important to note that this is where most bills die (in the committee). The House Committee on Financial Services will deliberate, investigate, and revise the bill before it can go to general debate.

If you would like updates on this issue - just subscribe to my blog as I will be tracking the bills progress in future blogs.

:)
Matt

Toll Free: 888-NCFIXER (623-4937)
Toll Free Fax: 888-FAX-4020 (329-4020)
Local: 860-282-6181
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East Hartford, CT 06108

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It was the 34th bank failure of the year but the LARGEST one so far this year. Today BankUnited has been seized. BankUnited Federal Savings Bank had $13 billion in assets as of May 2. BankUnited was based in Florida and is Florida's largest bank.

Under the FDIC insurance program, deposits are covered up to $250,000. This bank failure is expected to cost the already depleted fund $4.9 billion. My longtime blog readers may remember I wrote a previous post about this topic and I cited that the FDIC Fund only had $18.9 billion at the end of 2008. After the 34 bank failures - I wonder how much is left? The FDIC has raised the fee banks pay for FDIC insurance in an attempt to raise money for the fund. In addition, Legislation passed by Congress just this week allows for the FDIC to borrow up to $100 billion from the Treasury Department "if needed" to replenish the fund.

BankUnited was bought by an investor group for $900 million and will re-open Friday (that's today) as a newly chartered Federal Savings Bank called -- BankUnited - sounds familiar doesn't it? Customers of BankUnited FSB will still be able to write checks and uses their credit/debt cards with the new bank.

Let's put things in perspective for a moment. 34 bank failures through this year and we are not even halfway through the year. Last year there were only 25 failures all year and only 3 in 2007! The FDIC insurance fund was not designed for the amount of claims it is receiving. In addition when they increased the insurance to cover deposits up to 250,000 temporarily in 2008 (remember it use to be only 100,000) - that has exacerbated the claims being filed this year.

How long do you think it will be before the FDIC needs to get a bailout of its own?

:)
Matt

Toll Free: 888-NCFIXER (623-4937)
Toll Free Fax: 888-FAX-4020 (329-4020)
Local: 860-282-6181
330 Roberts Street 4th Floor
East Hartford, CT 06108

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Credit Card Bill passes the Senate

The new credit card bill passed the Senate today by a margin of 90-5. The bill contains a provision to limit the practice known as "universal default rate". The universal default rate is a practice whereby a credit card company would increase your interest rate (usually very high) for being late on either that card or ANY OTHER debt you have. Under the new bill the credit card companies would not be able to raise your rates until you are 60 days past due and even then they would have to restore the lower rate if the consumer makes 6 months of minimum payments on time.

The new bill would also impose restrictions on credit cards for people until 21. Under the bill, credit card applicants who are under 21 years of age would be required to prove their ability to pay or have a parent or guardian co-sign the account.

I personally applaud the legislative part which puts a stop to the "universal default rate" practices but I do not like the provision which restricts cards to people under 21. let me get this straight. At 18, you are a legal adult. You can sign a contract, buy a car, buy a home, but you still need Mommy and Daddy to co-sign for a credit card?

Tell me what your thoughts are on those two provisions of the new bill.

:)
Matt

Toll Free: 888-NCFIXER (623-4937)
Toll Free Fax: 888-FAX-4020 (329-4020)
Local: 860-282-6181
330 Roberts Street 4 Floor
East Hartford, CT 06108

credit repair company

Petition to change the Home Value Code of Conduct

Here is a link to the petition to change the Home Value Code of Conduct:

http://www.petitiononline.com/hvcc/petition.html

It is important for everyone to go and sign the petition if this law is going to be changed. How many appraisers do you know who have been put out of business by this new law?

I personally know one appraiser who has no work because of this new law. He was charging $325 for an appraisal. Now he has no work because his mortgage brokers can not order appraisals from him. He was just solicited by one of the big conglomerate Appraisal Management Companies to work for them. The AMC is charging $450 for an appraisal and is only willing to pay him $200 per appraisal. What ever happened to democracy and competition - this guy was just legislated out of his job!

Let me ask you another question: how long will it be until you have a real estate deal go south because of this new law. Because of this new law, appraisals are expected to cost more and take longer. What happens when your deal falls apart because the value doesn't come in because an appraiser was assigned from 50 miles away and doesn't know the local market.

Currently their are 8,900 signatures but they need lots more - please take a moment and sign it.

PLEASE PLEASE FLAG this post for feature status - it is imperative that the real estate community gets behind this move to change this legislation.

:)

Matt

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