Fall Grape Vine Wreath

I created this easy grape vine wreath in about ten minutes.

Total cost five dollars for the artificial pumpkins everything else foraged.

I had the florist wire and clippers from many past wreaths 

I will be making a few for friends.

Uploading to Youtube the full how to today

ACA 13 California

Funny how a Bill passes under the radar. I goes to the ballot November.

California coffers are in trouble when we were rich three years ago

Along comes Assembly Bill ACA 13 with got pushed forward to require

a two thirds majority for local and state taxes to change. 

ACA 13 (Ward), a proposed state constitutional amendment, which will significantly weaken California citizens’ ability to use the statewide initiative process by imposing a higher vote requirement to pass citizen-led initiatives, making it much easier to pass property taxes.  

Ward claimed ACA 13 would ensure that voters, rather than wealthy corporations or special interests, decide on taxes and services.  

Ward' s an Assembly member from San Diego and a Democrat.

ACA 13, or the Protect and Retain the Majority Vote Act,

 is a proposed state constitutional amendment in California. 

 It would ensure that a simple majority vote is required for a measure to pass.

 It would also require that any statewide initiative seeking to increase a vote threshold be approved by the same proportion of voters.  

 ACA 13 aims to protect the democratic process in local communities. It would ensure that voters, not wealthy corporations or special interests, decide which taxes and services are right for their communities. It would also make it harder for California voters to restore taxpayer protections when the State Legislature or courts attempt to weaken them. 

ACA 13 is specifically targeted at the Taxpayer Protection and Government Accountability Act (TPA). The TPA has qualified for the November 2024 ballot and polling shows it to be popular with voters. 

California state taxes, currently can be raised with a two-thirds vote of the 

Legislature. 

The business initiative would add a statewide vote requirement on top of that, 

though only a simple majority of voters would be needed.

Backed by labor unions, the League of California Cities, 

the California State Association of Counties, 

and groups that pursue infrastructure funding, 

"No levy, charge, or exaction regulating or related to 

vehicle miles traveled may be imposed as a condition of

property development or occupancy.” VMT fees are used 

as an environmental planning tool to focus development 

in more concentrated areas to reduce travel by automobiles.

prohibit advisory votes on how new tax money 

should be spent from being on the same ballot as 

measures to raise those taxes.

Such advisory votes aren't binding,

can be used to hold officials accountable 

if they don’t spend the money as promised. 

Local taxes approved by less than a two-thirds vote in 2023, 

and presumably increased fees, 

would be voided if the business-backed measure passes. 

The same goes for state taxes and fees not approved by a statewide vote.

Good for development?

Bad for businesses?

Additional taxes to get California back in the green?

What about local taxes and Proposition 13?

PMI Mortgage Insurance

 

 

Private mortgage insurance (PMI) is a type of insurance that lenders require borrowers to purchase if they make a down payment of less than 20% on a conventional mortgage. PMI protects the lender not the borrower in the event that the borrower defaults on the loan.

PMI works by insuring the lender against losses if the borrower stops making payments on the mortgage. If the borrower defaults, the PMI company will reimburse the lender for the remaining balance of the loan.

PMI is typically paid as a monthly premium that is added to the borrower's mortgage payment. The amount of the PMI premium depends on a number of factors, including the borrower's credit score, down payment amount, and the type of mortgage.

Borrowers can cancel PMI once they have built up enough equity in their home excepting if they have mortgage insurance with a FHA loan, then the 1.75% is permanent until they can sell or refinance to a conventional loan. Generally, borrowers can cancel PMI when their equity reaches 20% of the original purchase price of the home. However, some lenders may require borrowers to have 22% or 25% equity before they can cancel PMI.

The six big mortgage insurance companies are: Essent MGIC Radian NMI Enact and Arch. There is lender paid mortgage insurance or borrower paid insurance. It can be paid upfront for a bit lower interest rate or monthly over time.

Here is a step-by-step explanation of how PMI works:

1.    A borrower applies for a conventional mortgage with a down payment of less than 20%.

2.    The lender requires the borrower to purchase PMI.

3.    The borrower pays a monthly PMI premium to the PMI company.

4.    The PMI company insures the lender against losses if the borrower defaults on the loan.

5.    If the borrower defaults on the loan, the PMI company reimburses the lender for the remaining balance of the loan.

Benefits of PMI

PMI can be beneficial for both borrowers and lenders. For borrowers, PMI can make it possible to qualify for a mortgage even if they don't have a 20% down payment. For lenders, PMI protects them against losses if borrowers default on their loans.

Drawbacks of PMI

PMI can be a costly expense for borrowers. The PMI premium can add hundreds or even thousands of dollars to the borrower's monthly mortgage payment. Additionally, borrowers may have to pay PMI for several years, even if they make their mortgage payments on time.

How to avoid PMI

There are a few ways to avoid PMI:

• Make a down payment of at least 20% on your mortgage.
• Get a piggyback loan, which is a second mortgage that is used to cover the down payment.
• Ask your lender about lender-paid PMI (LPMI). LPMI is a type of PMI that is paid by the lender, not the borrower. However, LPMI is not available from all lenders and it can be more expensive than borrower-paid PMI.

 

PMI is a type of mortgage insurance that lenders require borrowers to purchase if they make a down payment of less than 20% on a conventional mortgage. PMI protects the lender in the event that the borrower defaults on the loan. PMI can be beneficial for borrowers, but it can also be a costly expense. There are a few ways to avoid PMI, such as making a down payment of at least 20% or getting a piggyback loan.

 

Fire Hazard Insurance in California

Hazard Insurance -California Fire Insurance in Trouble

The California homeowners insurance crisis has worsened in recent months, as

more and more companies have announced plans to exit the state. This has left

many homeowners scrambling to find coverage, and has driven up

prices for those who can still get insurance.

The crisis is being caused by a number of factors, including the

increasing risk of wildfires, climate change, and

high construction costs. In recent years, California has experienced a number

of devastating wildfires, which have caused billions of dollars in damage. This

has made insurers more reluctant to write policies in fire-prone areas, and has

led to higher premiums for those who can still get coverage.

Climate change is a factor in the crisis.

As the Earth's climate warms, California is expected to

experience more frequent and severe wildfires. Wildfires are now year round.

 

California government is moving to ban Phos-chek and other chemicals used to

fight fires. The red areal spray used to ritard and stop spread of fires is now

being restricted..

https://apnews.com/article/california-wildfires-retardant-pollution-lawsuit-1fa9557473357d03f01b592713afd4a3

High construction costs are another factor driving up the price of homeowners insurance.                The cost of rebuilding a home after a fire has increased dramatically in recent years, and

insurers are passing these costs on to homeowners in the form of higher

premiums.

Also, exorbitant claims for pipe break/ flooding/ water damage by 

galvanized pipes or unlimited tankless water heaters.

 

In response to the crisis, Insurance Commissioner Ricardo Lara

has taken few steps, including issuing moratoriums on insurance cancellations 

and non-renewals in fire-prone areas. 

He proposed a number of reforms, including allowing insurers to charge

higher premiums in fire-prone areas and creating a public insurance option.

Lara's response is too little too slow. 

"There are challenges, but I'm very confident

we're going to bring these companies

back," Ricardo Lara insurance commissioner says.

Also he says that forcing companies

"is not supported by law (according to) our legal team,”

California and top insurers haven’t left the

state," Lara said, they’ve just paused expanding.

 

• Providing financial assistance to homeowners who make wildfire

mitigation improvements to their homes.

• Creating a state-run insurance pool that would provide coverage to

homeowners who cannot get insurance from private insurers.

• Reforming the state's insurance regulations to make it easier for

insurers to operate in California.

"There isn’t a shortage now because there are more than

100 insurers still selling policies in California." Lara says but this is

incorrect.

Lara claims he cannot stop the big insurance companies from

blacklisting California homeowners.

However, of the 100 companies listed on the insurance commissioner’s website only 20

answer the phone and issue a quote. Many are no longer underwriting or offering

ANY hazard insurance in California. < cough cough> someone is not telling

the truth.

What are causes of the crisis?

The state needs to invest in fire prevention and mitigation measures,

and it needs to make it easier for homeowners to rebuild their homes

after a fire.

Where residents build in the path of danger,

they must face that their property maybe cannot be covered.

Speed up permit processes.

Have city or county resources boots on ground after a disaster. The CZU fire in

Santa Cruz mountains and the Paradise Fire residents still have not rebuilt.

Some fought city planning resistance to allow prefabricated housing verses

stick built in the years after these disasters.

U.S. insurers have disbursed $295.8 billion in natural

disaster claims over the past three years, according to international risk management firm Aon.

That’s a high for the past three-year period, according to the American

Property Casualty Insurance Association.

 

Some homeowner insurance policies cover damage from all

manner of perils, including fire and smoke, wind and hail, plumbing issues,

snow and ice, and vandalism and theft. Floods are generally covered by a

separate federally administered program. Flood insurance is available

from National Flood Insurance Program

(NFIP). You can also purchase a FEMA flood insurance policy, or buy

one from a private flood insurance company. Going forward insurance policies

might exclude lots of items.

Allstate, Erie, State

Farm, Farmers, Safeguard, Falls Lake, AIG, Berkshire Hathaway

and Nationwide all pulled out of California. If you have an existing insurance

policy, they hire Safeguard or Ulta (or some cheap inspection company that pays

an inspector $22 to go take photographs of the hillsides around your property,

the roof eaves, roof condition, and any possible perils). They will cancel you

without notice of the cause. Boom and you will not find the same cost

replacement insurance. IF You fail to provide the new insurance to your

mortgage lender, the servicer or lender will put forced place insurance at

about four times the cost with lower coverage.

Climate has increased damages in America. Floods,

hurricanes, fire, and natural hazards are hurting insurance companies.

Examining the changes in the spatial manifestation and the

rate of arrival of large tornado outbreaks - IOPscience

Taxpayer-backed Citizens Property Insurance in Florida was

the state’s second-largest insurer in 2021 in terms of policies written, 

according to the Insurance Information Institute.

Fourteen insurance firms have either left Florida as of April or have policy

portfolios that are failing. Farmer’s, the fifth-largest homeowners’

insurance provider in the United States, said in July that it would not renew

nearly a third of its policies in the Sunshine State. A state-backed policy in

California, where State Farm and Allstate have withdrawn or significantly cut

back on new policies, covers 3 percent of residents.

 

Geico closed its sales offices in California August 2022 and

is also no longer selling insurance over the phone to California customers.

Geico suffered a $1.9 billion pretax underwriting loss in 2022.

Looks like Geico is next.

My suggestion is homeowners need an

independent insurance agent on speed dial.

Know their children's names (have a deep relationship)

and they can advise you.

They can apply for California Fair Plan which is

not great coverage but might be your only choice.  

FAIR Plan can be purchased through an agent or broker licensed to sell property

insurance and registered with the California FAIR Plan.

 

 https://www.cfpnet.com/ 

It is NOT Fast and you will have to give them

money upfront to issue a declarations page.

C G Caroline Gerardo 9/5/2023

NMLS 324982