Forbes.com - FDIC Bags Five More Banks

Forbes.com is reporting that the nation has seen 108 banks closed this year by the FDIC.  Five more were closed at the end of July.

  As a result, The July failures drained the FDIC Deposit Insurance fund by $1.3 billion bringing the year-to-date total to $18.9 billion, well above the $15.33 billion prepaid assessments for all of 2010.

When will the takeovers cease or, at least, slow down?

Bank failures during “The Great Credit Crunch” began slowly as the FDIC only closed 25 banks during all of 2008. In 2009 the FDIC picked up the pace with 140 bank failures with a peak of 50 in the third quarter of 2009. So far in 2010 the FDIC closed 41 banks in the first quarter, another 45 in the second quarter, and so far 22 for the third quarter with two months to go.

The common denominator for weakness at the failed banks seems to be a high percent of non-residential and non-farm mortgage loans.  Construction and commercial loans did them in.

Yet, bank failures provide some good investing opportunities according to Richard Suttmeier, the Chief Market Strategist for ValuEngine.com.

Read the full report.

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Stephen M. Flatow 

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Hardship relief for mortgage borrowers.

According to a New York Times story,

STRUGGLING borrowers may find more flexibility from lenders starting this month. Fannie Mae, which sets lending standards for most mortgages, will begin easing its policies for those facing what it calls “unique hardships.”

The company will allow borrowers to skip up to six months of payments in these circumstances: if a spouse is injured or killed in military duty, or if they are forced to vacate a home to replace defective drywall.

It appears that drywall imported from China is toxic, not just to people, but to wiring and pipes.  As a result,

Homeowners who experience problems with drywall must often leave their homes for months at a time while it is replaced. Though the issue is covered by homeowners’ insurance, some owners face difficulties paying their mortgage while also incurring additional costs for temporary housing.

So, have to get out to fix the drywall?  Let your mortgage servicer know ASAP.

 If you have questions about what you see here, contact 

Stephen M. Flatow 

Stephen's Title Agency, LLC 

StephensTitle@comcast.net 

973-556-1628 Fax

New Jersey running out of open space says study. Duh.

 The Star-Ledger reports

For the first time, New Jersey’s landscape is covered more by housing and shopping malls rather than forests, the real consequence of the "two most sprawling decades" ever, a report being released today concludes.

The study, a collaboration between Rowan and Rutgers universities, analyzed land use data between 1986 and 2007 and estimates the state could run out of open space around 2050 if the pace of development that took place in the sprawl years continued.

The question is will the slow market further slow the amount of land under development?

And how about the upsurge in urban development, especially the kind seen in Hudson County?

Experts point to several factors behind the trend: younger generations now have fewer children and prefer urbanized settings; the recession has forced both builders and buyers to settle for smaller (and cheaper) houses; land is just too expensive now for more McMansions.

Read the full story.

 If you have questions about what you see here, contact 

Stephen M. Flatow 

Stephen's Title Agency, LLC 

StephensTitle@comcast.net 

973-556-1628 Fax

N.J. Communities to get revitalization money

Thanks to New Jersey’s two U.S. Senators, Lautenberg and Menendez,

counties and municipalities across New Jersey will receive $24,195,998 for various housing and community revitalization programs. The grants, administered through the Department of Housing and Urban Development (HUD), are part of four initiatives: The Community Development Block Grant (CDBG) program, the HOME Investment Partnership, the Emergency Shelter Grants (ESG) program, and the Housing Opportunities for Persons With AIDS (HOPWA) program.

The grant money will be made available through the U.S. Department of Housing and Urban Development.

According to a press release issued by Senator Lautenberg’s office,

The CDBG and HOME programs provide funding to develop decent and affordable housing, enhance infrastructure and develop economic opportunities primarily in communities with large populations of low and moderate-income families.  HOPWA funding provides housing assistance and related support services to meet the special needs of people with HIV and AIDS.  The ESG program provides homeless people with basic shelter and other services.

  Let's hope there's more money coming for New Jersey's struggling communities.

If you have questions about what you see here, 

contact Stephen M. Flatow 

Stephen's Title Agency, LLC 

StephensTitle@comcast.net 

973-556-1628 Fax