Bay Area Finance: Week 4, August 2009

Plenty of news this week from home sales exceeding expectations in the U.S., to improving conditions for asset-backed securities in Europe, to some hints that the Fed may not need to utilize its full buying-authority when it buys its next round of mortgage-backed securities… and of course the passing of one of the longest-serving Senators in American history whose advocacy for the ordinary American seems to underscore so much of how our nation’s well-being rests on those in the middle.  I think what is interesting in the finance news is how there is renewed interest from investors in the securities that fuel home lending— as if a renewed confidence in the welfare of the middle class has been claimed.  From the rescue of Fannie/Freddie (remember that?), to the pumping of billions into the financial system to save banking institutions (sorry Lehman Brothers), to the revamping of lending guidelines for FHA to make it a legitimately viable program across the nation, to the Fed’s program to buy Treasuries and other Asset-Backed Securities, to the federal housing tax credit for first-time home buyers, to incentives for lenders to modify under-water mortgages, to the Public-Private Investment Program to buy up the so-called “toxic assets” off the books of banks— and finally, to the American loan consumer finally waking up to the fact that if the loan-approval granted to you seems too good to be true, it probably is—- we have come a LONG WAY.  All I can say is that we will always prosper when policies truly cultivate a well-earned confidence for and within our middle class. 

See here for a little more on how much confidence matters.

To contact me about financing your dream-home click here.

Weekend Wanderer’s Events

…finding the treasures in your town and beyond. 

Two for This Weekend:

Al Green at the Warfield in San Francisco:  Gotta give a little love to my fellow Memphis-boy, Al Green.  The soul-singer’s Godfather (or Reverend, you might say instead) is playing a show next Wednesday night in San Francisco, and it’s sure to be a show worth seeing.  “So tired of being alone, so tired up on my own…”  You know this one.  Don’t be afraid to stand up and sway to that groove too.  The Reverend recommends it for the good of your soul!  See here for more info.   

“Creature Features Night” at AT&T Ballpark: I’ve been to see the opera simulcast at AT&T park, and of course I’ve been to plenty of games and a few shows there, but on Saturday they’re kicking it up a notch.  Between innings you’ll see classic film clips on the big screen from Creature Features, and after the game you can throw your blanket on the field and watch Night of the Living Dead  on the scoreboard screen in center field.  Looks like great fun!  See here for more info.  

Help Your Fellow Living Beings: 

“Eat Real” Festival in Oakland: This one benefits local community assistance organizations People’s Grocery, La Cocina, and Community Alliance with Family Farmers.  At Jack London Square this weekend you’ll find all sorts of food vendors, music, film, fun events for kids, a farmer’s market, microbrews at the beer tent, etc.  All for a great community cause!  See here for more info. 

Two Weekends from Now:

First Saturday Story-telling at The Asian Art Museum in San Francisco:  First of all, as our beloved San Francisco Chronicle describes: “The Asian Art Museum of San Francisco is one of the largest museums in the Western world devoted exclusively to Asian art. Its holdings include nearly 15,000 treasures spanning 6,000 years of history, representing cultures throughout Asia.”  And on the first Saturdays of the month Asian myths come alive in the galleries for kids (of all ages) as storytellers guide you through the folklore.  Check out this magnificent museum and see here for more info. 

Pic of the Week… from my own camera.

The Sheriff of Woodruff Avenue.

Bay Area Finance: Week 3, August 2009

This week we had an FHA loan file declined for a property in Monterey County because the underwriter at this lender (which is a MAJOR lender, I might add) incorrectly applied the “High Cost Area” loan limit, insisting the limit was $483,000— which was way below the loan amount we were applying for.  The underwriter cited the limits that DID change to this amount in January of 2009, but these same limits were amended to higher amounts with great publicity in May of 2009.  Monterey County’s limit was raised to $729,750 in May of 2009.  I mention this because it took two business days for the lender to acknowledge their mistake and reinstate the application.  And when everybody in a purchase transaction is working with a ticking clock to close escrow on a prescribed date, two business days is a long time to wait for a response.  We knew we were right, so we weren’t terribly concerned; and since it was bogus, we weren’t required to notify the borrowers of the decline.  But the reason I mention this is that THIS IS WHAT WE DO.  During the processing period of a loan file we are diligently policing the departments of Underwriting, Docs, and Funding at the lenders chosen for our loan files to make sure they’re processing our files RIGHT.  Since lending guidelines have been totally changed— and then amended after that, persistently— in the last couple of years, it is really not that unusual for an underwriter to make a mistake that could at worst— as in this case mentioned— decline the loan application.  We work to make sure the most current underwriting amendments are always utilized so these unfortunate mistakes don’t happen to you.

If you’d like to learn more about county loan limits that apply to both FHA and Fannie/Freddie loans, click here.

To contact me about financing your dream-home click here.

Weekend Wanderer’s Events

…finding the treasures in your town and beyond. 

Two for This Weekend:

San Francisco Opera Free at Stern Grove:  I’ve recommended the free simulcast of the opera at AT&T park where you can see the opera on the big screen and hear it streaming live from the War Memorial Opera House.  Well, this Sunday is your chance to SEE and HEAR the opera in person outdoors in the beautiful Stern Grove theatre surrounded by eucalyptus and redwood trees.  Tenor Marco Berti and others: Free, Free, Free!  Check it out here. 

Free Admission Day at The Lindsay Wildlife Museum in Walnut Creek: This museum is a place I used to go as a kid when it was in a different building in Larkey Park.  Now, while still in the park, it’s a premier wildlife museum specializing in animals native to California and it’s also an animal rescue hospital as well.  This Saturday is a free admission day.  So bring a picnic to enjoy in the park and check out this wild and wonderful part of our community.  See here for more info. 

Help Your Fellow Living Beings: 

Satellite Housing for Seniors in Oakland: From their website:  “Maintaining mobility, flexibility, and muscle strength is a huge health issue for seniors, and the risk of falls becomes greater with age. Exercise lowers the chance of falling by improving strength, coordination, and balance.”  They’re looking for volunteers to help with exercise instruction.  If you’re able to volunteer in the Dimond District this one could be for you.  Check it out here for more info.

Two Weekends from Now:

Outside Lands Music and Arts Festival in San Francisco:  Pearl Jam, Dave Matthews Band, Thievery Corporation, M.I.A., Black-eyed Peas, and more headline this show in Golden Gate Park.  SFSurfrider and SaveTheWaves collaborate for a beach cleanup at Ocean Beach (at the west end of Golden Gate Park) as part of the festival.  Three days of rockin’ and groovin’ coming your way two weekends from now.  Check it out here. 

Pic of the Week… from my own camera.

 The Sentinel of Bolinas Beach sings Happy Birthday to Heidi!

Bay Area Finance: Week 2, August 2009

This week’s article in the link below uses a lot of terms that make the read seem sort of exclusively meant for those with a greater understanding of the ever-complicated finance world than most ordinary homeowners would ever possess.  This is a very common thing, and I wish more explanations came along with some of these articles— such as with more hyperlinks— so more folks can fathom what the message is.  But I chose this somewhat complex article because it underscores something I have contended in discussions with colleagues for months: how the secondary market (where mortgages are bundled and sold as securities to investors) has undervalued a vast swath of these bundled mortgage securities for months and months— grasping far too exclusively for the Fannie/Freddie-guaranteed securities instead.  What I contend, in layman’s terms, is that the array of lending products we see available to the consumer has been severely and incorrectly hampered by both fear and poor evaluation of these securities… so much so that some traditionally great-value securities have been dismissed.  Place that description to any product at all and what you find is value that’s been quite carelessly neglected.  But, like sweet vindication, this is what the article exposes: how value actually is now being recognized in mortgage securities outside of the Fannie/Freddie bubble.  And without question, the more of that we see, folks, the better— because the secondary market is truly what drives everything in lending.

If you’d like to learn more about some of the secondary market click here.

To contact me about financing your dream-home click here.

Weekend Wanderer’s Events

…finding the treasures in your town and beyond. 

Two for This Weekend:

“The Frogs” by Aristophanes in Woodside:  “Come prepared for hiking”, they say, since this one is at the Theatre in the Woods outdoors and the performance actually takes place along the hike.  The show, “…is a Greek comedy by Aristophanes about Dionysus, the God of Theater, and his servant as they descend to the Underworld to bring back a worthy poet who can help Athens in its darkest hour.”  How cool is that?  See here for more info.   

“HandMade Nation” Screening and Director’s Q&A in San Francisco: This film screening by artist, author and filmmaker Faythe Levine will be part of the American Craft Council Show this weekend in San Francisco.  It chronicles the rise of the Do it Yourself movement in craft making where the punk culture and, say, the knitting culture intersects.  It assures some pretty interesting stuff for any artist or craftsperson, for sure.  Check it out here for more info. 

Help Your Fellow Living Beings:

Mentor a child right from your computer!: From their website:  “Become a caring pen pal with ePals’ eMentoring literacy program–In2Books.   On your own time, right from your desk, correspond with a third-fifth grade student via online letters about important issues in five books you will read together throughout the school year. It only takes a few hours a month from September – June.”  School is back in session, and here is a chance for you to be a real help.  Check it out here for more info.

Two Weekends from Now:

Bay Area Tap Festival in San Francisco:  Bay Area Rhythm Exchange is putting on their annual tap dance production, touted by the SF Chronicle as one of their picks for “Top Ten Dance Performances of the Year!”.  The historic Herbst Theatre will be the site for this year’s show which will include live musical accompaniment to the dancers’ performances as well.  See here for more info on the performances both Friday and Saturday of next weekend. 

Pic of the Week… from my own camera.

The “Living Roof” at San Francisco’s spectacular new

California Academy of Sciences in Golden Gate Park

Bay Area Finance: Week 1, August 2009

Some statistically-promising news has been coming out lately that indicates hopeful signs for the second half of the year in housing.  Rates are staying low and demand for both new homes and for previously-owned homes has caused an increase in The S&P/Case-Shiller home price index for the first time since 2006, according to the article in the link below.  Also from the article: “If you’re a homebuyer and you’re employed, you can’t complain,” said Donald Rissmiller, chief economist at New York- based Strategas Research Partners.  While I can’t completely agree with that statement— considering events such as wholesale lender Taylor, Bean and Whitaker closing up shop on one day’s notice yesterday can still happen to unsuspecting folks with loans in process— I am still remaining bullish on the progress I see.  Indeed, if you have the qualifications to fit into the box, right now is a GREAT time to apply for a mortgage loan.  Opportunities for long term financing are excellent right now, and those who can take advantage definitely should.  ‘Cause folks, if promising stats start coming in for successive months we’re going to see rates climb right up.  But the silver lining there will be that qualifying guidelines will probably loosen as well once those promising stats are sustained. 

If you’d like to learn more about some of the latest housing stats click here.

To contact me about financing your dream-home click here.

Weekend Wanderer’s Events

…finding the treasures in your town and beyond. 

Two for This Weekend:

East Bay Express: Best of the East Bay Party in Oakland:  This is one I have been wanting to get to for years, but never have.  It’s a free party put on by the local newspaper East Bay Express and features live music, art, dance, great food and drink, a kid’s zone organized by the Chabot Space and Science Center and more.  And this year, the headliner, Goapele, is not only FANTASTIC, she’s the daughter (in-law) of one of my friends/clients!  Gotta go!  Click here for more info. 

Grandmaster Flash in San Francisco: One of the original innovators of hip-hop music will be performing Saturday night at the renowned jazz club Yoshi’s in the Fillmore District.  Forming his group Grandmaster Flash and the Furious Five in the 1970s, they became pioneers of the genre bringing their creative style to grand success in the early 80s.  The first to include turntable “scratching” on a recording, they’re also the first hip-hop group to be inducted into the Rock ‘n Roll Hall of Fame.  Click here for more info. 

Help Your Fellow Living Beings: 

Building Futures with Women and Children Homeless Shelters: From their website:  “At Building Futures with Women and Children our mission is to build communities with underserved women and children where they are safely and supportively housed, free from homelessness and family violence. Children’s Program is a special place where children and youth can come and learn something new, have fun, talk, and create a community.”  Click here to find how you can help. 

Two Weekends from Now: 

Art and Soul Festival in downtown Oakland:  Newly moved to this date from its usual Labor Day weekend, the Art and Soul Festival remains some of the best live entertainment you can find in the Bay Area, and for an extraordinarily low price.  Taking place between the downtown high-rise buildings you’ll have your chance to enjoy downtown Oakland in a street fair atmosphere and maybe, maybe you’ll come back to enjoy some of the many new restaurants and clubs making “Uptown Oakland” and “Old Oakland”— both great spots to wander around.  Click here for more info. 

Pic of the Week… from my own camera.

Rickey Henderson

(in maroon pants and vest at center) 

adored by A’s fans at jersey retirement game.