Break out those Maple Leaf flags. It's Can-Am time again.
We may not have perfect weather to kick off Canadian American days on the Grand Strand, but Chamber of Commerce leaders are predicting a good festival anyway.
There are plenty of activities planned for our visitors from north of the border, including a couple of US Air Force band concerts that have already sold out.
Chamber leaders say a strong exchange rate for Canadian dollars should help attract more visitors this year.
"Can Am really signifies the beginning of the tourism season and we are certainly hoping for a good one this year. And we're hoping to get it started with a lot of Canadian visitors coming to the Grand Strand," said Myrtle Beach Area Chamber of Commerce president Brad Dean.
Can-Am days starts Saturday.
Saturday, March 8, 2008
Friday, March 7, 2008
increasing emergency auctions by $40 billion
The Fed announced it was increasing the size of its emergency auctions by $40 billion and said it was going to provide $100 billion to primary dealers in U.S. Treasury debt.
Analysts said the money was clearly going to be used to prop up mortgage-backed securities.
Despite aggressive actions taken in recent months, a fresh wave of apprehension about the health of the U.S. and global financial markets has swept through credit markets this week. Credit spreads have widened.
Banks have already reported tens of billions in losses, mostly via complex securities tied to subprime mortgage loans, and there's concern that more losses are coming. In addition, fresh worries have surfaced about the health of the U.S. economy -- including a contraction in nonfarm payrolls for February reported early Friday
Analysts said the money was clearly going to be used to prop up mortgage-backed securities.
Despite aggressive actions taken in recent months, a fresh wave of apprehension about the health of the U.S. and global financial markets has swept through credit markets this week. Credit spreads have widened.
Banks have already reported tens of billions in losses, mostly via complex securities tied to subprime mortgage loans, and there's concern that more losses are coming. In addition, fresh worries have surfaced about the health of the U.S. economy -- including a contraction in nonfarm payrolls for February reported early Friday
Thursday, March 6, 2008
mortgage loan application volume increase of 3.0%
The Mortgage Bankers Association (MBA) released its Weekly Mortgage Applications Survey for the week ending February 29, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 684.9, an increase of 3.0% on a seasonally adjusted basis from 665.1 one week earlier. On an unadjusted basis, the Index increased 15.3% compared with the previous President’s Day holiday shortened week and was up 1.1% compared with the same week one year earlier.
The Refinance Index increased 4.5% to 2569.0 from 2458.9 the previous week and the seasonally adjusted Purchase Index increased 1.4% to 363.1 from 358.2 one week earlier. The Conventional Purchase Index increased 0.9% while the Government Purchase Index (largely FHA) increased 3.5%. On an unadjusted basis, the Purchase Index increased 14.5% to 401.6 from 350.7 the previous week. The seasonally adjusted Conventional Index increased 2.4% to 929.0 from 907.1 the previous week, and the seasonally adjusted Government Index increased 6.2% to 277.8 from 261.5 the previous week.
The four-week moving average for the seasonally adjusted Market Index is down 11% to 809.1 from 909.5. The four week moving average is down 2.8% to 370.7 from 381.3 for the Purchase Index, while this average is down 15.6% to 3365.8 from 3987.0 for the Refinance Index.
The refinance share of mortgage activity increased to 52.4% of total applications from 52.0% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 17.3 from 15% of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.98% from 6.27%, with points unchanged at 1.15 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.26% from 5.77%, with points increasing to 1.08 from 1.01 (including the origination fee) for 80% LTV loans.
The average contract interest rate for one-year ARMs decreased to 5.83% from 5.84%, with points decreasing to 0.85 from 0.86 (including the origination fee) for 80% LTV loans.
The survey covers approximately 50% of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.
The Refinance Index increased 4.5% to 2569.0 from 2458.9 the previous week and the seasonally adjusted Purchase Index increased 1.4% to 363.1 from 358.2 one week earlier. The Conventional Purchase Index increased 0.9% while the Government Purchase Index (largely FHA) increased 3.5%. On an unadjusted basis, the Purchase Index increased 14.5% to 401.6 from 350.7 the previous week. The seasonally adjusted Conventional Index increased 2.4% to 929.0 from 907.1 the previous week, and the seasonally adjusted Government Index increased 6.2% to 277.8 from 261.5 the previous week.
The four-week moving average for the seasonally adjusted Market Index is down 11% to 809.1 from 909.5. The four week moving average is down 2.8% to 370.7 from 381.3 for the Purchase Index, while this average is down 15.6% to 3365.8 from 3987.0 for the Refinance Index.
The refinance share of mortgage activity increased to 52.4% of total applications from 52.0% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 17.3 from 15% of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.98% from 6.27%, with points unchanged at 1.15 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.26% from 5.77%, with points increasing to 1.08 from 1.01 (including the origination fee) for 80% LTV loans.
The average contract interest rate for one-year ARMs decreased to 5.83% from 5.84%, with points decreasing to 0.85 from 0.86 (including the origination fee) for 80% LTV loans.
The survey covers approximately 50% of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.
Wednesday, March 5, 2008
Loans have changed
Only one year ago, the interest rate of a home mortgage for someone without a down payment versus someone with 10% down was a difference of about 0.5% in rate. The difference in interest rate between someone with a job and someone without a job was also about 0.5%. In addition, the difference between someone with a 700 credit score and someone with a 580 credit score was 0.75%. Today, there are little or no loan programs available for someone without a job, without a down payment or with a 580 credit score.
Many would argue that there never should have been such aggressive loan programs and that we are only now returning to a level of prudent and fiscally responsible business practices. While this argument is valid, it will not make the transition any less painful for both consumers and lending institutions.
The noted challenges are further compounded because currently one out of 11 households is dealing with some form of credit or identity theft. Many individuals have invested in some form of credit-monitoring program, but monitoring your credit is not enough. It has become essential for consumers to actively manage their credit as well as their overall qualification capabilities.
Many would argue that there never should have been such aggressive loan programs and that we are only now returning to a level of prudent and fiscally responsible business practices. While this argument is valid, it will not make the transition any less painful for both consumers and lending institutions.
The noted challenges are further compounded because currently one out of 11 households is dealing with some form of credit or identity theft. Many individuals have invested in some form of credit-monitoring program, but monitoring your credit is not enough. It has become essential for consumers to actively manage their credit as well as their overall qualification capabilities.
Tuesday, March 4, 2008
No boarding a plane using your SC driver's license
Starting in May you won't be able to board a plane by using your South Carolina driver's license as an ID.
That's if our state doesn't take some quick action.
Homeland Security head Michael Chertoff is pushing our state, and three others to seek an extension to the federal, real ID law.
South Carolina has resisted implementing the real ID law, calling it costly, impractical and an invasion of privacy.
That's if our state doesn't take some quick action.
Homeland Security head Michael Chertoff is pushing our state, and three others to seek an extension to the federal, real ID law.
South Carolina has resisted implementing the real ID law, calling it costly, impractical and an invasion of privacy.
Monday, March 3, 2008
The interest rate surcharges
Fannie Mae instituted a “soft market policy” that “penalized” properties located in certain markets across the U.S., by requiring Loan-to-Value (LTV) reductions (in most cases) if that market was determined to be a high risk market. One lender that we are aware of designated the entire State of Florida as a high risk state, subject to potential LTV reductions; another lender designated risk at the zip code level. The implications of these changes were to effectively change the rules of certain loan programs offered by lenders; a 100% financing program could be limited to 95%; a 90% program could be reduced to 80%. At a minimum, these changes could increase the amount of down payment required by the borrower. It will also eliminate certain borrowers from qualifying for a mortgage if they do not have access to the required down payment.
The latest changes being implemented by Fannie Mae, effective March 1, will place additional hurdles before consumers with certain credit scores can obtain a mortgage loan. In the past, mortgage loan applicants with credit scores between 620 and 850 generally received the same interest rates on conventional loans. The new guidelines specify that a lower LTV must be met for loan applicants with credit scores between 620 and 679, or an interest rate surcharge will be added to the rate. The new LTV is 70.01%.
The interest rate surcharges are staged as follows:
Credit Score Interest Rate SurchargeTo Quoted Rate
680 to 850 no increase660 to 679 .125% increase640 to 659 .25% increase620 to 649 .375% increase
The home buyer with a credit score between 620 and 679 can still qualify for a conventional loan; however, they will be required to pay a higher interest rate if they do not have equity or available funds for a higher down payment to achieve the required LTV. There are exceptions to these guidelines for FHA, VA and other loan programs specified by Fannie Mae. Buyers need to check with their lender or mortgage professional to determine these exceptions.
Last week, Freddie Mac announced changes, effective June 1, to their loan policies that will place further restrictions on LTV and credit scores, which will have the effect of increasing the cost of borrowing for a greater number of loan applicants.
Our purpose here is not to question the actions being taken by Fannie Mae and Freddie Mac, but to make real estate and builder sales professionals aware of these changes. The fact is that it is getting more difficult for certain consumers to qualify for a home mortgage or refinance an existing loan. It is imperative that in order to properly service our customers, we become knowledgeable of these changes. We also need to assume that more changes will be made. Our goal is to keep you apprised of these changes as they occur.
The latest changes being implemented by Fannie Mae, effective March 1, will place additional hurdles before consumers with certain credit scores can obtain a mortgage loan. In the past, mortgage loan applicants with credit scores between 620 and 850 generally received the same interest rates on conventional loans. The new guidelines specify that a lower LTV must be met for loan applicants with credit scores between 620 and 679, or an interest rate surcharge will be added to the rate. The new LTV is 70.01%.
The interest rate surcharges are staged as follows:
Credit Score Interest Rate SurchargeTo Quoted Rate
680 to 850 no increase660 to 679 .125% increase640 to 659 .25% increase620 to 649 .375% increase
The home buyer with a credit score between 620 and 679 can still qualify for a conventional loan; however, they will be required to pay a higher interest rate if they do not have equity or available funds for a higher down payment to achieve the required LTV. There are exceptions to these guidelines for FHA, VA and other loan programs specified by Fannie Mae. Buyers need to check with their lender or mortgage professional to determine these exceptions.
Last week, Freddie Mac announced changes, effective June 1, to their loan policies that will place further restrictions on LTV and credit scores, which will have the effect of increasing the cost of borrowing for a greater number of loan applicants.
Our purpose here is not to question the actions being taken by Fannie Mae and Freddie Mac, but to make real estate and builder sales professionals aware of these changes. The fact is that it is getting more difficult for certain consumers to qualify for a home mortgage or refinance an existing loan. It is imperative that in order to properly service our customers, we become knowledgeable of these changes. We also need to assume that more changes will be made. Our goal is to keep you apprised of these changes as they occur.
Sunday, March 2, 2008
Horry County teaching jobs
Teachers looking for a fresh start in the coming school year showed up in droves Saturday, looking for work in Horry County.
The county says it's looking for innovative, creative and certified teachers.
Dozens waited in the long lines hoping for a quick on-site interview.
Administrators and principals were on hand to take resumes and get to know the candidates.
We spoke with Anne Ginglen, a special needs teacher, who says she likes what the county has to offer.
"I was really impressed with the Horry County School system and I'm a special needs teacher and I know there is a great need for special ed teachers in this county," Ginglen said.
To be considered for a teaching job in Horry County, you must complete their online application, have three professional references, your college transcripts, and a valid teaching certificate.
The county says it's looking for innovative, creative and certified teachers.
Dozens waited in the long lines hoping for a quick on-site interview.
Administrators and principals were on hand to take resumes and get to know the candidates.
We spoke with Anne Ginglen, a special needs teacher, who says she likes what the county has to offer.
"I was really impressed with the Horry County School system and I'm a special needs teacher and I know there is a great need for special ed teachers in this county," Ginglen said.
To be considered for a teaching job in Horry County, you must complete their online application, have three professional references, your college transcripts, and a valid teaching certificate.
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