Duke's Blog

Lock and Load, Folks!

Duke Fyffe (Duke Fyffe Real Estate Group) — Fri, 20 Nov 2009 16:31:58 -0600

I know that I have informed you that the first-time homebuyer tax credit was extended and expanded to include existing homeowners. I'm sure you also know that interest rates are at an all-time low. Interest rates are currently hanging in there below five percent fixed for most scenarios. Something you may not know is that the Federal Reserve has already bought over $1 trillion in mortgage-backed securities of the announced $1.25 trillion total they agreed to buy earlier this year. When the Fed mortgage market support ends, rates will probably rise quickly. My advice to you is to make hay while the rates shine. Whether buying a new home or refinancing your existing mortgage, NOW is the time!

The following example bears out the fact that waiting will do nothing more than cost you money. The principal and interest payment on a $300,000 mortgage at a 4.75% interest rate and amortized over 30 years is $1,564.94. If interest rates were to move up to 6.0%, the payment on that same $300,000 mortgage would be $1,798.65. Thus, a buyer or borrower who is currently qualified for a $300,000 loan with interest at 4.75% would only be able to borrow or refinance approximately $255,000. The slight increase in interest rate from 4.75% to 6.0% decreases your buying or refinancing qualifications by $45,000. If interest rates were to increase to 7.0%, a buyer or borrower would have their qualifications reduced by more than $65,000. They lose 22% of their buying power if they wait...that's a BUNCH!

Jumbo loans, those in excess of $417,000, are currently at slightly over 6.0% interest and are much more difficult to qualify for than a conforming conventional, FHA or VA loan.

$8,000 Homebuyers Tax Credit

Duke Fyffe (Duke Fyffe Real Estate Group) — Tue, 27 Oct 2009 17:49:38 -0500

Great news! Tonight, the Senate is voting to extend the Homebuyer Tax Credit through April 30, 2010. As drafted, the tax credit will apply to ALL, not just first-time homebuyers. The move-up buyers must have been in their current residence for a minimum of three years. The income limitation for a since buyer is $125,000, and $225,000 for married couples filing a joint tax return. I don't know any additional details but I'm sure you'll all get it after a positive vote!

~ Duke

How Long Does It Take for a Credit Score to Become Good?

Duke Fyffe (Duke Fyffe Real Estate Group) — Tue, 27 Oct 2009 13:48:23 -0500

Credit scores don't change each passing day. Like a book on a shelf, they're only good when someone uses them. Yet they are very much like your reputation. They can be trashed in one crazy night. And it takes a lot longer to recover than it does to ruin,

The folks at Fair Isaacs, where the FICO score comes from, note that today's gold standard is 750, not the 720 that once was.

Two factors drive down a score: major delinquencies or foreclosures, and the amount of credit that you use. Delinquencies will kill a credit score longer than any other problem and will haunt you for the seven years they are allowed to remain by law. However, the impact diminished with each passing year as long as you do the right things: pay on time, keep balances low, and take on new credit only when you need it.

If you've maxed your charge accounts, what you owe is roughly figured into a third of your score, so maxing out puts it way down. But there's a quick fix: pay it down quickly, and that score pops up like a bobbler in water.

FICO scores look at three parameters: frequency, or how many delinquencies you have; severity, or how late the payments are; and recency, or how close they are to the day your score is figured.

The biggest thing to avoid is closing accounts. That will only drive down the amount of credit you have, closing the gap with the amount of credit you've used. That's bad.

What else? The new cards that will inevitably be offered during the holiday season. Will that additional 10 percent discount you get for a new account really make or break your finances?

Source - The Denver Post

IS YOUR PARENT READY FOR ASSISTED LIVING?

Duke Fyffe (Duke Fyffe Real Estate Group) — Thu, 24 Apr 2008 14:22:11 -0500

Answering These Questions Will Help You Decide

Making the decision to move a parent into an assisted living facility can be difficult for the whole family.

Change Can Be Hard for Older Adults
Moving into an assisted living facility can be hard for older adults, especially if they are accustomed to being independent and maintaining their own homes. The thought of leaving a beloved home that holds many years of memories can bring sadness and grief.

Children See Their Parents the Way They Were Before
The decision to choose an assisted living facility can be just as hard for the children of aging parents as it is for the parents. In her work as a marketing counselor for a continuing care retirement community, Paulette Kaufman says she is amazed at how many children continue to see their parents as the strong, in-charge people they were 30 years ago. "They are accustomed to seeing their parents provide help and support," she says, "and they truly fear seeing their mother or father struggling."

Son Saw His Father as More Competent Than He Was
Kaufman described meeting a son who brought his father to tour the independent living neighborhood, which is designed for active seniors.

"On the phone, I asked him how his father was managing at home," she says. "His reply was confident: ‘My Dad is fine, and does everything for himself.'"

On the day of the appointment, Kaufman saw that the parent was a frail, unshaven man, wearing a warm-up suit that needed washing. His bright eyes sparkled, however, and he gave Kaufman a big smile and a warm greeting.

As they walked down the hall, the older man confided to Kaufman that his legs were too weak to walk far, and Kaufman knew he needed assisted living, where the rooms and distances are more manageable, and 24-hour personal care is available.

"I turned to the son and explained that as our parents age, sometimes they need extra care and assistance," Kaufman says. "Everyone wants their parents to live independently as long as possible, but the ability to make good decisions and to care for one's self can slowly decline." Kaufman adds that if an emergency arises, it's important to have another caring adult nearby.

After touring the assisted living facility, the older man smiled and said, "This is more like it." When the father went to the restroom, his son looked at Kaufman and said, "I just had no idea he was so frail."

Children Often Overlook Signs of Decline in Their Parents
Kaufman says that this scenario is common. "The son always saw his dad as the strong father figure of years ago," she says. "After a bit of probing, some of my questions revealed signs he hadn't seen, like recent weight loss, and uneaten meals in the refrigerator.

"It was difficult for this loving son to acknowledge that his father had aged and needed assistance with daily tasks," she says. "A tear came to the son's eyes as he realized he had been in denial, and that he wasn't helping his father in the right way."

Is Your Parent Ready for Assisted Living? Ask Yourself These Questions
It's easy to overlook signs of decline in older adults, so Kaufman suggests asking yourself the following questions to help you determine if your parent is ready for assisted living:

Is your parent telling you that he is eating, but you're seeing food go bad in the refrigerator?

Is s/he covering up bruises from falling that s/he doesn't want you to see?

Have you seen your parent wearing the same clothes when you go to visit?

Does s/he hear strange noises in the night?

When you look around the house or yard, is it as neat and clean as it used to be?

Is your parent able to take medications correctly?

Does your parent respond appropriately to an emergency?

When you really look at your parent, do you see the bright and vibrant person from years ago, or do you see a more limited person who needs some help one hour a day, three hours a day, or around the clock?

Kaufman stresses the importance of adult children being able to recognize when their parents need help. While making the decision to move to an assisted living facility can be difficult, adult children have a responsibility to ensure that their parents are properly cared for, comfortable, and secure.

TOP 10 REASONS TO WORK WITH A REALTOR

Duke Fyffe (Duke Fyffe Real Estate Group) — Thu, 24 Apr 2008 14:19:42 -0500

When the economy is uncertain, homeowners may want to try to save a few dollars by selling their homes themselves. But, a slower market is actually the best time to have an experienced professional on your team.

1. Real estate is one of the largest financial transactions you can make, usually dealing with hundreds of thousands of dollars. If you had a $100,000 tax or legal issue, wouldn't you want to work with a tax professional or an attorney? In the same way, an experienced Realtor can provide you with expertise to handle your valuable transaction.

2. Your Realtor can suggest repairs and cosmetic work that may increase the value of your home.

3. According to NAR's 2005 Profile of Home Buyers and Sellers, the home price for sellers who use an agent is 16% higher than those who don't. Trust a professional Realtor to help you set and negotiate the best price for your home.

4. Your Realtor will market and promote your property to other agents and to the public.

5. Your Realtor can help you select a professional and reputable appraiser, inspector, and title company based on best value and best service.

6. Your Realtor will communicate for you with all other parties to the transaction.

7. Your Realtor can save you time and money by coordinating inspections, appraisals, and contingency dates.

8. Difficult situations often arise in a real estate transaction. The typical home sale today involves more than 20 steps after the initial contract is accepted to complete the transaction. A professional Realtor can help you resolve any issues that come up during the process.

9. Your Realtor helps you draw up the contract and negotiate the offer and counteroffers for you.

10. The amount of paperwork involved in a real estate transaction can be daunting. From the initial sales agreement to the closing, your Realtor can assist you in understanding the documents and filling them out so they are legally binding.

- Courtesy of Land Title Guarantee Company

Denver Has Second-Lowest Household Bills

Duke Fyffe (Duke Fyffe Real Estate Group) — Thu, 24 Apr 2008 14:18:55 -0500

Denver is second only to Orlando, Florida for lowest home utility/services bills in the country, according to the WhiteFence Index for January.

Orlando has the lowest average for home phone, internet, television, electricity and natural gas, with costs of $247.01. Denver is the next lowest at $251.23. Baltimore is the highest at $371.65.

Source-The Denver Post

Who To Call....

Duke Fyffe (Duke Fyffe Real Estate Group) — Fri, 26 Oct 2007 17:12:01 -0500

Call the fraud units of the three national credit bureaus:

Equifax:

· To Report fraud, call 800-525-6285 or write to P.O. Box 740250, Atlanta, GA. 39374-0250.

· To order a copy of your credit report go to http://www.equifax.com/ or call 800-685-5000 or 800-685-1111.

· To dispute information in your report, call the phone number provided on your credit report.

· To opt out of pre-approved offers of credit, call 888-567-8688 or write to Equifax Options, P.O. Box 740123, Atlanta, GA 303-74-0123.

Experian (formerly TRW):

· To report fraud, call 888-EXPERIAN or 888-397-3742, fax to 800-301-7196, or write to P.O. Box 1017, Allen, TX 75013.

· To order a copy of your report, go to http://www.experian.com/ or call 888-EXPERIAN.

· To dispute information in your report, call the phone number provided on your credit report.

· To opt out of pre-approved offers of credit and marketing lists, call 800-353-0809 or 888-5OPTOUT or write to P.O. Box 919, Allen, TX 75013.

Trans Union:

· To report fraud, call 800-680-7289 or write to P.O. Box 6790, Fullerton, CA. 92634.

· To order a copy of your credit report, go to http://www.transunion.com/ or call 800-888-4213.

· To dispute information in your report, call the phone number provided on your credit report.

· To opt our of pre-approved offers of credit and marketing lists, call 800-680-7293 or 888-5OPTOUT or write to P.O. Box 97328, Jackson, MS. 39238.

Contact all creditors with whom your name or identifying data have been fraudulently used. For example, you may need to contact your long distance telephone company if your long-distance calling card has been stolen or you find fraudulent charges on your bill.

Contact all financial institutions where you have accounts that an identity thief has taken over or that have been created in your name but without your knowledge. You may need to cancel those accounts, place stop payment orders on any outstanding checks that may not have cleared, and change your Automated Teller Machine (ATM) card, account and Personal Identification Number (PIN).

Contact the major check verification companies (listed in the CalPIRG-Privacy Rights Clearinghouse checklist) if you have had checks stolen or bank accounts set up by an identity thief. In particular, if you know that a particular merchant has received a check stolen from you, contact the verification company that the merchant uses:

1. CheckRite: 800-766-2748.

2. ChexSystems: 800-428-9623 (closed checking accounts)

3. CrossCheck: 800-552-1900

4. Equifax: 800-437-5120

5. National Processing Co. (NPC): 800-526-5380

6. SCAN: 800-262-7771

7. TeleCheck: 800-710-9898.

What To Do If It Happens To You

Duke Fyffe (Duke Fyffe Real Estate Group) — Fri, 26 Oct 2007 17:11:24 -0500

The signs can vary, but typical indicators of fraud and/or stolen identity include:

· One of your creditors informs you that they have received an application for credit with your name and Social Security number.

· Incoming calls or letters stating that you have been approved or denied by a creditor to which you never applied.

· You receive credit card, utility, or telephone statements in your name and address for which you never applied.

· You no longer receive your credit card statements, or notice that not all of your mail is delivered to you.

· A collection agency tells you they are collecting for a defaulted account established with your identity, but you never opened the account.

If you think you have become a victim of identity theft, or fraud, act immediately to minimize the damage to your funds, financial accounts and credit report.

Below is a list of some actions that you should take right away:

Contact the Federal Trade Commission (FTC) to report the situation:

Online www.ftc.gov

By telephone toll-free at 1-877-ID-THEFT (877-438-4338 or TDD at 202-326-2502), or

By mail to Consumer Response Center, FTC, 600 Pennsylvania Avenue, N.W., Washington, DC 20580.

Under the Identity Theft and Assumption Deterrence Act, the Federal Trade Commission is responsible for receiving and processing complaints from people who believe they may be victims of identity theft, providing informational materials to those people, referring those complaints to appropriate entities, including the major credit reporting agencies and law enforcement agencies. For further information, please check the FTC's identity theft web pages. You can also call your local office of the FBI or the U.S. Secret Service to report crimes relating to identity theft and fraud.

You may also need to contact other agencies for other types of identity theft.

1. Your local office of the Postal Inspection Service if you suspect that an identity thief has submitted a change-of-address form with the Post Office to redirect your mail, or has used the mail to commit frauds involving your identity.

2. The Social Security Administration if you suspect that your Social Security number is being fraudulently used (call 800-269-0271 to report the fraud.)

3. The Internal Revenue Service if you suspect the improper use of identification information in connection with tax violations (call 1-800-829-0433 to report the violation.)

How to Prevent Fraud and Identity Theft

Duke Fyffe (Duke Fyffe Real Estate Group) — Fri, 26 Oct 2007 17:10:04 -0500

There are several ways you can help prevent fraud and identity theft.

· Destroy private records and statements. Tear up or shred credit card statements, solicitations and other private documents that contain private financial information. Any information you keep, be sure to keep in a secure place.

· Secure your mail. Empty your mailbox quickly, or get a PO box so criminals don't have a chance to steal credit card pitches. Never mail outgoing bill payments and checks from home. They can be stolen from your mailbox and the payee's name erased with solvents. Mail them from the post office or another secure location.

· Safeguard your Social Security Number. Never carry your card with you, or any other card that may have your number, like a health insurance card. And don't put your number on your checks. It's the primary target for identity thieves because it gives them access to your credit report and bank accounts.

· Don't leave a paper trail. Never leave ATM, credit card or gas station receipts behind.

· Never let your credit card out of your sight. Worried about credit card skimming? Always keep an eye on your card, or, when that's not possible, pay with cash.

· Know who you're dealing with. Whenever anyone contacts you asking for private identity or financial information, make no response other than to find out who they are, what company they represent and the reason for the call. If you think the request is legitimate, contact the company yourself and confirm what you were told before revealing any of your personal data.

· Take your name off marketers' hit lists. In addition to the national "Do-Not-Call registry 1-888-832-1222, you can also cut down on junk mail and opt out of credit card solicitations by calling 1-888-5-OPT OUT.

· Be more defensive with personal information. Ask Sales people and others if information such as a Social Security or driver's license number is absolutely necessary. Ask anyone who does require your Social Security number - for instance, your insurance company - what their privacy policy is and whether you can arrange for the organization not to share you information with anyone else.

· Review your credit card statements carefully. Make sure you recognize the merchants, locations and purchases listed before paying the bill. If you don't need or use department-store or bank-issued cards, consider closing the accounts.

· Guard your information. Do not give out your account numbers, login information or passwords for online transactions to others.

· Know your delivery dates. Know when your account and bank statements come to you by mail, and contact the account holders or banks when you do not receive them by the usual dates.

· Beware of unencrypted websites. Make sure you do not send your credit card information for online purchases through websites that are not secured & encrypted, or by mail.

· Watch your ATM card. Be aware of those behind you when using the ATM machine; guard viewing access to your pin entry.

· Don't fall for telephone solicitations. Do not give your credit card, Social Security number or other personal information to telephone solicitors. If you are interested in the product, research the company and it's product first and call them back to order if legitimate. Do not give any personal information over the phone in exchange for the promise of "winning" anything.

· Email solicitations. If you receive an email directing you to the website of a company with which to do business, requesting for you to provide account numbers or other private information, do not provide the information. Contact the company directly to determine the legitimacy of such a request.

· Be careful where you write your information down. Do not write account information or pin numbers on cards or places whereby a thief may be able to access both credit cards and pin numbers in the same theft - for example do not write your pin number on the backs of your credit or ATM cards.

Fraud and Identity Theft

Duke Fyffe (Duke Fyffe Real Estate Group) — Fri, 26 Oct 2007 17:09:28 -0500

Fraud costs the American economy millions of dollars per year in losses. Between January and December, 2006, the Federal Trade Commission received over half a million consumer fraud identity theft complaints, with losses of over $400 million reported. The losses affect consumer savings accounts, retirements and the ability to purchase homes. Bank accounts have been emptied with no recourse. Increased e-commerce from the rise in Internet use has opened the doors for easier fraud perpetration. While companies involved in information technology have invested in increased security, fraud prevention is a continuing battle requiring the awareness of both consumers and businesses. The good news is that there are simple steps you can take to help prevent unauthorized access to your information and finances. Although fraud can take many forms, our advice will be mainly focused on the types that most affect credit reports and scores.

Common types of fraud

1. Identity theft: Identity thieves gain access to information that allows them to pose as someone else. They may steal boxes of checks, bank statements or other mail from a mailbox; steal a wallet or purse and use the information to open new accounts, as well as spend on existing credit cards or checks; or extend a fraudulent offer to you via phone or mail. Many people who have had their identities stolen have not found out until the next time they try to open a new credit account, or apply for a home or other type of loan.

2. "Phisher" or mock websites: This is a rather new phenomenon, where perpetrators duplicate a website and send emails requesting that a customer reapply or provide security information. The information is then used to steal the consumer's identity, access bank funds, or apply for fraudulent loans. The phisher site spam emails tell consumers to click on a link to what looks like a real corporate website and input their personal information. The fake website looks like it comes from a legitimate company with whom a consumer may have a relationship, but the fraudulent site is really just a vehicle to steal consumer information.

3. Social Security Fraud: This happens when someone gains access to a Social Security number and uses it, along with other personal information, to commit fraud or identity theft. Social Security numbers of deceased or retired persons via their Social Security checks, along with an address, can allow someone to apply for credit reports that often contain enough additional information for a perpetrator to take the next step.

4. Intercepting credit card numbers from online transactions or databases: When consumers buy goods or services over the internet, it's rare to have the credit card information transferred without encryption, or coding, to prevent hacking. But there are still some cases where computer hackers gain access to information as it is sent. Hackers also search for weaknesses in databases maintained by businesses, government and financial institutions, and attempt to exploit them to gain account numbers. The incidence of breaking into these databases is not high, but one access breach can give perpetrators access to thousands of account numbers at once.

5. Mishandling of credit reports: Credit reports contain all the information a thief would need to steal using existing accounts, or to steal one's identity completely and cause major financial harm. There are several ways those in the credit reporting industry manage to balance the need for accurate account information to rate, while keeping enough information hidden to protect the public from theft. Strict compliance regulations from bureaus and the government require credit report users to have passed many hurdles to begin ordering and using credit reports. In addition, account numbers are partially masked on copies assessable to consumers. Data security standards are extremely high, and audits are frequent.

Increase Your Buying Power - Understand Your Credit Scores

Duke Fyffe (Duke Fyffe Real Estate Group) — Fri, 26 Oct 2007 17:07:09 -0500

Your credit score is a numerical representation of your statistical likelihood to repay credit that is extended to you. Scores range from 350-850. Your score is a "snapshot" of a specific moment and can change with new actions and the passage of time.

Until recently, the secrets of credit score calculation have been very closely guarded. We can now estimate how your score is put together.

Payment History = 35%

· Do you pay your credit on time?

· Length of positive credit history

· Severity and quantity of delinquencies

Amount Owed = 30%

· Quantity of credit accounts-too many credit cards with balances can lower a score

Length of Credit History = 15%

· The longer the history, the better

· How long have your credit accounts been established?

· How long has it been since you used certain accounts?

New Credit = 10%

· Research shows that opening several credit accounts in a short period of time does represent greater risk - especially for people who do not have a long established credit history.

Types of Credit in Use (Healthy Mix) = 10%

· 2 installment loans

· 3 revolving accounts with balances

· Balances on revolving debt below 30% of the high credit

· No collection accounts

· No public records

· No foreclosures

· No late payments

Tipping the Scales in Your Favor

· Pay all of your bills on time or early. Even a 30 day late on a small credit card can have a significant impact on your scores.

· Don't co-sign loans - their late payments are yours!

· Don't close old revolving accounts no longer in use.

· Don't open new accounts unless absolutely necessary (inquiries may or may not affect your score depending on the rest of your credit history).

· Report fraud immediately. If you find yourself the victim of fraud, immediately contact the credit bureaus, your credit card companies, banks, and the FTC at www.ftc.gov.

· Monitor your credit. Order a copy of your credit report once a year from www.annualcreditreport.com.

· If you are planning to refinance or buy a home, do not make any major purchases or run up the balances on your credit cards prior to the transaction.

What The Mortgage Lenders Are Saying…..

Duke Fyffe (Duke Fyffe Real Estate Group) — Tue, 16 Oct 2007 13:12:00 -0500

The following information was given to me from two of our trusty loan officers.....

FYI.....

I wanted to pass this information from a few of the investors we are receiving e-mails from in regards to the mortgage market. The large banks who buy and sell loans on the secondary market (who service non-conforming loans - which are almost all of them as they entered that market in the last few years) are finding that those loans are not performing. Now is not the time to accept non-conforming loans on your listings, or to put any of those buyers in your car that need stated income, high LTV (loan to value), and even jumbo loans as they are being shut off by large investors like Citibank and Bank of America until they can get a handle on the market. The lenders who are still doing them are increasing the rates. The sense is the A-paper jumbo loans will be back as soon as the secondary market settles down. "Creative lending" is a thing of the past in Colorado. Several states have passed laws forbidding stated income loans.

I am getting notices of mortgage companies closing their doors every day. When you receive lender letters on your listings, you will want to ask more questions on the type of loan the buyers are doing.

The positive side is that buyers and sellers in Colorado need trusted real estate and loan professionals now more than ever. People will still need to buy and sell real estate, and there is still some relocation moving in and out of the Denver metro area. It's a lot less likely borrowers will work with the Help You Sell and Lending Tree type companies. This is good news for us.

Courtesy of Shannon Feyler, EMC

Another one writes.....

You have likely seen much of the talk on Wall Street about the state of the mortgage market, and may be wondering "what's really going on?"

What is the liquidity crisis everyone is talking about? We all know that most (conforming) loans originated in the US are sold to Fannie Mae and Freddie Mac, who then sell the loans to Wall Street firms, who of course, turn around and sell them back to consumers (i.e. investors) in the form of mortgage backed securities.

In many parts of the country, we've seen real estate values change a bit....and values have stopped increasing as dramatically as they once had. In conjunction with this, we have seen some more aggressive products being released (and used) over the past few years - which we have come to call the "Alt-A". In addition to sub-prime loans, these Alt-A products (typically reduced documentation and/or high LTV loans) are primarily the loans that are causing market participants concern as their overall performance is not perhaps what the investors anticipated.

As a result, mortgage participants (i.e. buyers of mortgage backed securities) reduced what they are willing to pay for these loans. In order to compensate for this, these loans (typically already closed and funded) are sold at a "discount" (as they cannot go back to the client and increase the interest rate, the seller must give the buyer an additional "cash premium" in order to increase the overall yield -or return- to the buyer to incent them to purchase the loans). Not only does the seller now give up the profit they were anticipating from the sale of the loans, they must also PAY to sell the loans - and when we're talking about millions of dollars in loans being funded per day, it becomes a large financial issue. For folks doing a lot of these types of loans, there will be some investors who may have deep enough pockets to maintain, but many will not.

Early last week, market participants watched American Home Mortgage (the 10^th largest mortgage in 2006) declare bankruptcy - not due to financial mismanagement of any kind, but because the loans they had in their pipeline (many Alt-A and nonconforming loans) were deemed by the marketplace to carry more risk than the return was worth. This caused many analysts and market participants to look more closely at the mortgage market in general, and readjust the value of these types of loans based on the anticipated future performance of the Alt-A and second mortgage loans. While we did not do business with American Home Mortgage, it has been painful to watch them go through this.

By and large, conforming loans have not been impacted (much), though second mortgages are currently going through a massive reform as companies like National City Home Equity (the largest 2^nd mortgage lender in the US) temporarily suspended taking new second mortgage loan applications on ALL products. The non-conforming/jumbo market has also been impacted as we saw rates increase by 1.5% (again, a 1.5% addition to RATE) in one day.

It will be interesting to see what unfolds over the next few weeks, and we'll keep you updated. The credit market will stabilize at some point, but in the interim, we're seeing interest rates increase dramatically on the Alt-A and non-conforming loan products We're seeing the re-emergence of government loans (FHA and VA), and loans with mortgage insurance (MI).

The bottom line: It is more critical than ever before to be sure you're working with a lender who has employed healthy lending practices over the years so that you, your clients, and their earnest money are not a risk.

Courtesy of Lori Richardson, CCM

Measure Twice….Cut Once

Duke Fyffe (Duke Fyffe Real Estate Group) — Tue, 16 Oct 2007 13:09:12 -0500

And like this old saying advises, Fed Chairman Ben Bernanke and his Federal Open Market Committee probably measured their decision quite a few times before making their recent .50% cut to the Fed Funds Rate. But if the Fed's history of making cuts and hikes in cycles continues - this cut is probably not a "one and done".

Here's what the Fed had to say as they announced the cut: "Economic growth was moderate during the first half of the year, but the tightening of credit conditions has the potential to intensify the housing correction and to restrain economic growth more generally. Today's action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time." This means that the Fed will take whatever steps are necessary in terms of rate cuts to try and prevent a possible recession, so long as inflation remains in check.

Initially, both Stocks and Bonds rallied on the comforting words from the Fed - but as Bond Traders analyzed the potential future impact of the Fed cut over the following days, they started selling off Bonds with both hands, causing fixed home loan rates to rise by .125 to .25%, actually higher than where they stood before the Fed Rate Cut. What happened?

Traders realized that a Fed Funds Rate cut could encourage increased spending by consumers and businesses, as borrowing costs will now be cheaper for Home Equity Lines of Credit, consumer loans like car loans and credit cards, and business loans as well. In turn, increased spending can translate into increased inflation in the long run - and inflation is bad news for Bonds. Bonds deliver a fixed rate of return, and the value of that return is eroded by inflation. So Bond Traders sold, the price of Bonds moved lower, and home loan rates moved higher as a result. Counterintuitive to many...but its reality, and now you understand what many do not - including much of the mainstream media.

An action packed economic calendar is ready to unfold for the week, with a look at Consumer Confidence and Sentiment, New and Existing Home Sales, GDP, Manufacturing - you name it, this week has got it. But many of the week's reports will pale in comparison to Friday's big enchilada, the highly anticipated Personal Consumption Expenditure (PCE) Index. Why is it so important? Because this is the report the Fed watches most carefully to gauge consumer inflation.

And we know that the Fed feels inflation is presently under control, giving them the green light for the recent cut to the Fed Funds Rate. So will this important report show a tame read on inflation, and confirm the Fed's move to cut? Fed Chairman Bernanke and his fellow inflation-fighters at the Fed certainly hope so. Inflation-hating Bonds would also appreciate news of soft inflation, and home loan rates could improve as well. But what if the report shows stronger than expected consumer inflation? If it does, inflation-hating Bonds will react negatively, and home loan rates will move higher in response.

The chart shows how Bond prices are fighting to stay above the 200-day Moving Average, which could continue to act as a nice "floor of support" if Bonds can hold their ground. Remember that when Bond prices move higher, home loan rates improve...so staying above this floor of support would be a very positive sign. But with the plethora of economic news and headlines arriving during the coming week, capped off by Friday's high impact PCE, Bond pricing and home loan rates will likely continue on their volatile path.

House Passes Comprehensive FHA Reform

Duke Fyffe (Duke Fyffe Real Estate Group) — Tue, 16 Oct 2007 13:07:36 -0500

Good News!

Here is a brief scenario for new measures passed for FHAs. We will keep you posted as soon as we get the exact guidelines from the investors and how they are going to deal with this.

Washington, DC - The U.S. House of Representatives today overwhelmingly passed H.R. 1852, the "Expanding American Homeownership Act of 2007," which will revitalize the Federal Housing Administration (FHA), a federally insured loan program that for over 60 years has been a reliable source of affordable fixed rate mortgage loans, especially for first-time homebuyers. The measure, originally introduced by Representative Maxine Waters, Chairwoman of the Subcommittee on Housing and Community Opportunity, and Barney Frank, Chairman of the Financial Services Committee, will enable FHA to serve more subprime borrowers at affordable rates and terms, recapture borrowers that have turned to predatory loans in recent years, and offer refinancing loan opportunities to borrowers struggling to meet their mortgage payments in the midst of the current turbulent mortgage markets.

"There is an affordable housing crisis in America. In recent months, that crisis has exploded beyond the poorest renters and homeowners, to threaten the domestic economy. H.R. 1852 is a necessary step in walking us back from the brink and in the direction of meeting the housing needs of all Americans," said Chairwoman Waters.

"A revitalized FHA program will help future homeowners realize the dream of home ownership, and will prevent many first time and inexperienced home buyers from being pushed into loans that are unaffordable or difficult to understand," said Chairman Frank. "The bill we passed today will help people all across America because we have enacted provisions to allow the FHA to insure loans in high cost areas."

Specifically, the bill includes the following important provisions:

· Lower Down Payments. Authorizes zero and lower down payment loans for borrowers that can afford mortgage payments, but lack the cash for a required down payment.

· Housing Counseling. Authorizes more than double the current funding level for housing counseling, to help subprime homebuyers and borrowers late on mortgage loan payments.

· Subprime borrowers. Directs FHA to provide mortgage loans to higher risk (but qualified) borrowers, without authorizing unnecessary fee hikes on such borrowers.

· Reverse Mortgages. Enhances the FHA reverse mortgage loan program to help seniors pay for health and other expenses, by removing the loan cap to avoid program shutdowns, raising loan limits, and by reducing the maximum fee lenders can charge for these loans.

· Multifamily Loans. Raises FHA multifamily loan limits, so these loans can fully fund construction costs in high cost areas, and enhances sale of foreclosed FHA rental housing loans to localities, so that affordable housing can be maintained in local communities.

· Affordable Housing Fund. Authorizes up to $300 million a year from the bill's excess profits for affordable housing, instead of returning such funds to the General Treasury.

· Higher Loan Limits. Adopts the Frank/Miller/Cardoza amendment that would raise FHA single family loan limits, which now bar loans above 95% of the median home price in each local area and shut FHA out of higher cost home markets. The amendment raises the FHA loan limit in each area to the lower of (a) 125% of the local area median home price or (b) 175% of the national GSE conforming loan limit. The amendment also retains the bill's provision for a nationwide FHA loan floor of 65% of the GSE conforming loan limit, and gives HUD authority to raise these loan limit amounts by up to $100,000 "if market conditions warrant."

In addition, the House adopted an amendment to the bill to direct FHA to make available refinancing loans to existing qualified homeowners who are in default or at risk of default due to rate resets or mortgage market conditions, and to authorize lower down payments for such purpose. The amendment also includes provisions to address problems arising from inflated appraisals.

A Lesson Learned

Duke Fyffe (Duke Fyffe Real Estate Group) — Tue, 31 Jul 2007 14:58:15 -0500

It was absolutely gorgeous in Colorado this past weekend. The temperatures were in the mid to high 80s, and we had enjoyed measurable rain for the past 2 nights. What a great time to grill on the deck, right? Wrong....but I'm sure I'll laugh about it someday.

I started my gas BBQ grill, and noticed it had been awhile since I had cleaned it. So I set to the task of scraping the grates, and let the drippings fall into the briquettes. Suddenly, a burst of flames about 10' tall shot out of the grill! Whoa, it had been a long time since I cleaned it! No problem, I thought, I'll just turn the gas off and close the lid. If there's no air getting to the fire, it'll go out. Wrong again. I watched the thermometer as it climbed up to the 600 degree mark. This was getting serious. I thought for sure the paint was going to melt right off the grill. I ran in the house and grabbed the fire extinguisher that I keep in the kitchen. Ah ha....this will do the trick! I pulled the pin, squeezed the trigger......nothing. It didn't work! I knew that I had a back-up extinguisher in the garage. I ran out there, looked high and low, and couldn't find it! Just as I was about to call emergency services, the fire finally went out on its own. Whew. No harm done.

I learned a couple of valuable lessons that I'll share with you. First, make sure you inspect all of your extinguishers to be sure they're working properly. I found these helpful tips on fire-extinguisher101.com.

Inspect fire extinguishers at least once a month (more often in severe environments).

Fire extinguisher maintenance is important for everyone's safety.

You must ensure that:

The extinguisher is not blocked by equipment, coats or other objects that could interfere with access in an emergency.
The pressure is at the recommended level. On extinguishers equipped with a gauge, the needle should be in the green zone - not too high and not too low.
The nozzle or other parts are not hindered in any way.
The pin and tamper seal (if it has one) are intact.
There are no dents, leaks, rust, chemical deposits and/or other signs of abuse/wear. Wipe off any corrosive chemicals, oil, gunk etc. that may have deposited on the extinguisher.

Some manufacturers recommend shaking your dry chemical extinguishers once a month to prevent the powder from settling/packing. Fire extinguishers should be pressure tested (a process called hydrostatic testing) after a number of years to ensure that the cylinder is safe to use. Consult your owner's manual, extinguisher label or the manufacturer to see when yours may need such testing. If the extinguisher is damaged or needs recharging, replace it immediately!

IMPORTANT: Recharge all extinguishers immediately after use regardless of how much they were used.

What is the difference between a fire extinguisher inspection and fire extinguisher maintenance?

INSPECTION
An inspection is a "quick check" to give reasonable assurance that a fire extinguisher is available, fully charged and operable. The value of an inspection lies in the frequency, regularity, and thoroughness with which it is conducted. The frequency will vary from hourly to monthly, based on the needs of the situation. Inspections should always be conducted when extinguishers are initially placed in service and thereafter at approximately 30-day intervals.

MAINTENANCE
Fire extinguishers should be maintained at regular intervals (at least once a year), or when specifically indicated by an inspection. Maintenance is a "thorough check" of the extinguisher. It is intended to give maximum assurance that an extinguisher will operate effectively and safely. It includes a thorough examination and any necessary repair, recharging or replacement. It will normally reveal the need for hydrostatic testing of an extinguisher.

And second, always know where they are stored within your home. Here are more tips from fire-extinguisher101.com.

Location, location, location! Having a fire extinguisher is one thing, having it handy in case of an emergency, is another.

It is recommended to have at least one fire extinguisher on each floor of your home. Also, keep them in plain sight and no more than five feet above the floor. Do not put them in closets because that will cost you valuable time when you are reaching for it. And even though a fire extinguisher may not match your décor, do not put it behind curtains or drapes.

The most important places to have a fire extinguisher are in areas that are more susceptible to fire. These areas are the kitchen and the garage.

Kitchen: According to U.S. Fire Administration statistics, the kitchen is the place where fires most often start. If you have a fire extinguisher in the kitchen, most grease fires can be contained. Do not put the fire extinguisher near the stove as it will be out of your reach if the fire is on the stovetop. You should not have to risk burns just to reach your extinguisher. Therefore, the best place to put the fire extinguisher is by the door of the kitchen so you have easy access to it.

Garage: It is a good idea to keep a fire extinguisher here because in most homes, this is the place we use as storage. Often, leftover paints, solvents, and building materials will be piled up without a second thought. Again, the best location to mount the fire extinguisher is by the door.

Denver Mayor John Hickenlooper Speaks at the Metro Brokers Advisory Meeting

Duke Fyffe (Duke Fyffe Real Estate Group) — Wed, 25 Jul 2007 16:55:24 -0500

On Monday, July 23^rd, 2^nd term Denver Mayor, John Hickenlooper, spoke at the Metro Brokers Advisory Meeting, and he had plenty of good news to deliver about the Denver Metro area! Denver is no longer the "cow town" that people envision - we are a bustling Metropolitan area with loads of attractions, a busy nightlife, and lots of good statistics for the overall future of Denver! The Denver area is also starting to attract more conventions and events, such as the 2008 Democratic National Convention and a portion of the 2008 NCAA Tournament. Some other interesting statistics were:

There will be 190 miles of new tracks added to the FasTracks project
Denver has more miles of biking/jogging paths than any other Metro area in the country
Denver International Airport (DIA) is the lowest cost, most efficient airport in the country, with 47.3 million passengers traveling through it in 2006. A luxury hotel is to be built at DIA in the near future.
Tourism growth is up 13.6%
Homelessness is down 36%, with panhandling down a whopping 92%! Mayor Hickenlooper has a goal to end homelessness in 10 years, and it sure seems like he's on his way to achieving that goal!
The police force is up 10%
Overall crime is down big time! Denver's crime rate dropped more in 2006 than any other major city in the United States.
Denver's recycling has increased by 63%.
Energy use in Denver has dropped 20%. Mayor Hickenlooper pointed out that if every person in Denver would invest $600-$1000 to make their home more energy-efficient, the money they saved in heating and cooling costs would be recouped in just 18 months!
65,000 trees were planted in Denver in 2006, one of the largest, if not the largest, single-year expansions of an urban forest in the history of this country.
In 2010, we will host the world's first Biennial of the Americas - to celebrate the contemporary arts, cultures and emerging creative thoughts of the Western Hemisphere.

So, there you have it! The Mayor confirmed what all of us in Denver already know - that this is a terrific city to live, work, and raise a family in, and it will continue to grow and thrive in the future!

As a side note, Family Circle Magazine recently voted Castle Rock, a suburban city just 20 miles south of Denver, as the best family-friendly town in the country! I have lived and worked in Castle Rock and Douglas County for nearly 30 years, and have watched it "grow up" over that period of time, so it came as no surprise that this great city earned the #1 ranking.

Close-In Horse Property!

Duke Fyffe (Duke Fyffe Real Estate Group) — Thu, 19 Jul 2007 16:59:11 -0500

3120 Flintwood Road
Franktown, CO 80116
Neighborhood: Kellogg - Franktown
Type: Vacant Land
Lot Size: 9.36 Acres

Great Opportunity to Purchase 9.36 Acre Horse Property in Franktown! West Facing - BIG Views! Surrounded by Fabulous Homes and Land! All Fenced! LRR Zoning - No Limit on Number of Animals Kept on the Property! No Covenants! Access Onto Paved Flintwood Road! Best Value Available!

Absolutely Gorgeous Ranch with Unobstructed Pike's Peak Views! $899,000

Duke Fyffe (Duke Fyffe Real Estate Group) — Thu, 19 Jul 2007 14:15:50 -0500

9948 Pine Valley Drive
Franktown, CO 80116
Type: Single Family Home
Floors: Single Story
Parking/Garage: 6+
Bedrooms: 4
Baths: 8
Square Feet: 5,579 Finished
Lot Size: 5.09 Acres
Year Built: 1994
School District: Douglas

Lovely Main Floor Study with Hardwood Floors and Built-In Cabinets and Bookshelves! Elegant Archway Leads to a Generously-Sized Formal Dining Room with Coffered Ceiling and Chair Rail! Cool Colorado Evenings Will Seem Warmer as You Snuggle in Front of the Brick-Wrapped Gas Fireplace in this Vaulted Family Room. The Built-In Entertainment Center is Ideal for Your Media Components, and the Fireplace Mantle and Plant Loft are Perfect for Displaying Your Treasures. Large Windows Afford Stunning Views of Pike's Peak! A Wet Bar, Complete with Sink and Corian Countertops, is Situated at One End of the Family Room. This Large Space is Open to the Kitchen, Making it the Ideal Area for Both Formal and Informal Entertaining! The Kitchen is a Gourmet Cook's Dream! There's Plentiful Corian Countertop Space, Tons of Upper Cabinets and a Liberal Amount of Lower Cabinets and Drawers! The Island Features a Wine Cooler, Trash Compactor and More Cabinets and Workspace. Built-In Wall Ovens, a Planning Desk, and Sunny Breakfast Nook are Just a Few More of the Features This Kitchen Has to Offer. Step Out to the Multi-Level Deck for BBQs with Friends and Family and Unobstructed Rocky Mountain and Meadow Views! You Won't Want to Resist This Sumptuous Main Floor Master Suite. A True Retreat! It Features a Large Walk-In Closet and His and Hers Baths! The Finished Basement Features a Large Rec Room-Plenty of Room Down Here for Exercise Equipment, a Pool Table, and a Home Theater! There'¿s Also a Guest Bedroom with Access to the Deck, and a Full Bath! A Large Unfinished Room Provides Extra Storage Space! 2 Furnaces! 2 A/C Units! 2 Humidifiers! 2 New Water Heaters! 2x6 Construction! Concrete Tile Roof! Triple Pane Windows! 10' Ceilings in Basement! 50' x 150' Dog Run! Doggie Door to Laundry Room!

Interior Features:
Basement	Central Air
Den/Office	Dining Room
Family Room	Fireplace
Forced Air	Hardwood Floors
Laundry Room	Main Floor Bathroom
Main Floor Bedroom	Pantry
Walk-In Closet

Exterior Features:
Deck/Patio	Horses Allowed
Spa/Hot Tub	View

Study

Kitchen

Deck

Family Room

Rec Room

Rear View