Putting the Flag Back Up

Jerry Brown has courage. He took an issue and wrestled it to the ground by the horns. Fannie Mae and Freddie Mac squashed the PACE program earlier this month. I wrote about how short sighted this decision was as we need to find ways to be independent of foreign oil. The upfront cost to put in a solar system for my home was $26,900.00. The idea of putting out the cash when I do not know how long I will stay in my giant home (with children going to college) seemed unwise.




The PACE program would have allowed me to retrofit a solar system and free me from electric bills. The cost would have been added on the property tax bill like mosquito abatement or other underground electric pole improvements over a twenty year payment program. The PACE program also was going to help construction jobs in Orange County, when the building industry is at an all-time slow right now. More than seventy local construction companies have taken the classes to be certified, all for nothing. The program was expected to create 15000 local jobs in Orange County.



In a lawsuit filed yesterday Brown, our attorney general accused the FHFA of mischaracterizing the program as a loan rather than an assessment, and argued its decision not to cooperate with the program could cost the state up to $100 million in government subsidies. The suit asks the court to force Fannie and Freddie to recognize the program correctly as assessments.



The death of the PACE program stops the more than $450 million in planned projects to be cancelled In an election year when Jerry Brown has only 5% of the funding for a campaign he takes a risky move in taking on our federal government. I see him championing issues for California in new and exciting ways. As our governor 1974- two terms he was nicknamed “moonbeam” for his idea of having a satellite for California emergency communications, funny how today satellites are the norm not some silly idea. Jerry Brown is a smart guy, ahead of his time. Why on earth would we not want to use solar in a state that has sunshine more days than not?

http://ag.ca.gov/newsalerts/release.php?id=1951

Photo courtesy Larry Hagman and solar tech

Everybody can Change...

Being Green is Blue today

Green energy just got a kick in the pants from Fannie Mae and Freddie Mac. The PACE program, or property assessed clean energy program is not going to allowed by the Federal Housing Authority.


I looked into putting a solar system on my home. The cost was approximately, $ 26,900. Which would save my monthly utility bill of $ 500. Instead of paying for this in cash the city allows a program which puts it on my tax bill, just like mosquito abatement or other bond measures which are paid over time. It would allow financing the solar system or energy efficient retrofits which would be paid back over twenty years. If I sell my home the benefit goes to the new owner and so does the bill.

It appears that moving away from our dependency on oil is only rhetoric. With the rising costs of oil and utilities a program which made sense has been squashed.

ZZ Bully

simmons above left

Simmons

 kluft above

simmons above

sealy above right and below

SEALY ZZ the giant in the mattress durable goods industry has
been trying to crush every competitor with a variety of strategies.

They have bought up smaller manufacturers, forced some into bankruptcy,
cut prices to monopolize the market, and acted in various methods to gain
dominace.

One of their latest techniques is to claim they own the rights to having colored trim and veritical handles. This has started a lawsuit when Sealy has no patent on color or appearance whatsoever but
has deep pockets to squeeze out a smaller competitor.

I'll give anyone a dollar who can't find ten mattresses on the internet or in their bedroom that doesn't
have contrasting color and texture and or vertical handles. Goes to proove my theory that anyone in America can sue even if they are wrong, but the one who has the most money wins.

Mortgage Rates Fall getting one is a bigger Pain

Mortgage Rates Hit another Historic Low Good news Bad News

Interest rates low, and a few Economists are now saying rates could go lower! Shocking that the European Central Bank holds off reacting to the crashing E. U.

The Institute for Supply Management yesterday said it’s services index fell to 53.8 in June from 55.4 in May. Thomson Reuters expected a level of 55.0. Treasury prices pushed down interest rates, which have been falling for weeks. Tuesday the yield on the benchmark 10-year Treasury note fell to 2.94 percent from 2.98 percent late Friday. It hasn’t been below 3 for a while.

Mortgage refinances heat up but despite the lower rates getting a loan is not easier.

Getting a loan is more difficult than ever before. The key component to closing your home loan is who is your lender.

During the process do not buy. Do not shop for anything. Do not even think of looking at a car until after your loan is funded and recorded. Don’t call me paranoid until you hear what is going on behind the scenes.

Fannie Mae’s new loan quality initiatives ask lenders to continue to pull credit reports, at the beginning, during and closing process. Any inquiry for new credit will be followed to prove what is owed. The messy part is it is hard to provide proof that you did not open a new Bloomingdales account – if you ask Bloomies to give you a letter saying you didn’t open anything Bloomingdales will not provide the letter you need to prove the ghost does not exist.

Not only is your credit being scoured for new hidden accounts, the lowest middle number will determine your final pricing. Your FICO score now has become a vital organ.

Lenders may not tell you is behind the scenes they are ordering MERS reports to determine if you have other hidden cosign accounts, 4506T to actually see the IRS returns filed. Going to a broker is a position of out of control, you must go direct to the bank. Underwriters check and balance your dividends to match the accounts you claim for assets, and if you have failed to disclose any deductions. Lenders will check FBI records randomly of Borrowers and agents. You may be asked to allow a background check, which is looking for anything violent in your past.

Reference:

https://www.efanniemae.com/sf/lqi/index.jsp

“Fannie Mae is implementing the LQI enhancements to promote improved loan delivery data that is complete, accurate, and fully reflective of the terms of the mortgage. The LQI will also help ensure that the loan meets the credit and eligibility standards, pricing guidelines, and other requirements of the Selling Guide or negotiated variances. A primary focus is on capturing critical loan data earlier in the process and validating it before, during, and immediately after loan delivery.”

“Mortgage Electronic Registration System (MERS®) report can be run to determine if the borrower has undisclosed liens and/or if another mortgage is being originated. MERS® ServicerID is a free service available to the public that allows users to obtain servicer information on properties with mortgage liens registered in the MERS®”

https://www.mers-servicerid.org/sis/.