Fannie and Freddie are government backed entities that keep mortgages moving, allowing homeowners to purchase homes. The plans are to delist their shares from the New York Stock Exchange.
The companies' regulator, the Federal Housing Finance Agency, said Wednesday that it expects Fannie Mae and Freddie Mac shares to trade on the Over-the-Counter Bulletin Board.
Fannie, Freddie, VA, and FHA have backed almost 97% of home mortgages this year. In the past it was the folks on Wall Street that hedged their beats but pulled out of the market years ago when they did not have enough liquidity to support the asset. We soon saw the tightening of the mortgage market with Wall Street gone and now mostly left with government sponsored programs which took over Fannie and Freddie in 2008. If it was not for these programs we would have had a severe crash.
The move to delist the shares isn't a surprise since Fannie has had a $1 average price level for 30 trading days. NYSE rules require a company to take action to boost its share price or delist.
Upcoming Laguna Beach Events and News!
Simplifying Fate by Christopher Mathie
The Marion Meyer Contemporary Art Gallery is hosting a new exhibit titled "Ascension". The exhibit hosts artists Candice Eisenfeld, Christopher Mathie, Lisa Lala and Sylvia Torres and will be at the gallery until July 15th. For more information, directions or a preview of the art, visit the gallery's website at http://www.marionmeyergallery.com/
Jazz Concert at the Hotel Laguna
Starting June 9 Hotel Laguna will be hosting a Jazz concert every other Wednesday and ending on September 5th. New bands will be playing every week, so the avid jazz enthusiast can experience a wide range of styles and rythms at every event. The concert begins at 6pm and lasts until 8pm at the Hotel Laguna Rose Garden. For information or reservations for 8 people or more, call 715.9713 or email info@lagunabeachlive.org
This week the Laguna Beach City Council has voted in favor of using $93,000 on promoting new business and providing services and information for existing businesses in hopes of drawing new shops and restaurants to the city. So far, sales tax revenue for the city has been dow 25% from last year, a result of too many vacant storefronts and fewer visitors brought on by the recession.
Historically, Laguna Beach has been notorious for its strict regulations and the difficulty of getting a business approved in the city. While Laguna's greatest asset is its small town artist community reputation, its also been the biggest hinderance to new business moving in. Most of the money approved by the city council will be used for a business consultant who can give the city council ideas on how to promote a business friendly environment while keeping the city's small town image.
Laguna Beach's famous Sawdust Festival will team up with Honda and radio station MYFM this summer to promote the art fair via a raffle for a 2011 Honda TRZ. The Sawdust Festival is known for its iconic art stands where local vendors display their wares, the well known live glass blowing display and, of course, the sawdust floors. While the Sawdust festival has never paired up with a corporate sponsor before, it hopes the $5 raffle tickets for the new car will bring more visitors to the fair in what is shaping up to be a busy summer. If you are looking for fun live events, music and art, check out the Sawdust Festival in Laguna Beach, CA at http://www.sawdustartfestival.org/
Good news for homeowners that have been hit hard by declining home prices! In a report by Clear Capital, a real estate data research firm, housing prices have increased 5.8% in May 2010 from last year, which is the biggest gain in housing prices since 2006. According to the report by Capital, last May housing prices had dropped 19.3% from the previous year.
Clear Capital's report attributed the gain in prices to homebuyer tax credit which increased interest in buying homes and therefore an increase in prices. While the tax credits have come to an end, the current crisis in the European Union and resulting low interest rates in the United States has kept interest in purchases high. Additionally, the report lists the lower saturation rate of REO property as an additional reason for higher prices. Usually REO properties are sold for lower prices than a normal home sale, which brings down home values in the surrounding areas as well. Investors and first time buyers have taken advantage of these low prices and as a result percentage of properties on the market that are REO has dropped almost 14%. Lets hope this trend continues and we stay on the road to recovery! (As soon as unemployment gets fixed of course!)
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