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October 2007

October 31, 2007

Fed Cuts Rates to 4.5%, Oil Sets New Record, Dollar Sets New Low

The Federal Reserve cut short-term interest rates by another quarter of a point today, citing continued weakness in the housing sector and otherwise slower economic growth.  The move was largely anticipated by the broader market.

Crude oil approached $95 per barrel on the news of the rate cut.  A weaker U.S economy in general means a weaker U.S. dollar (The dollar also hit a new low today vs the euro) and thus higher oil prices.  If you are planning a trip abroad anytime soon, hang on to your wallet!  The situation doesn't look to improve much in the near term.

For more information about real estate and mortgage issues in Katy or West Houston contact Aaron Layman.  He is a licensed real estate broker and mortgage broker.  You can contact him directly at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com.

October 30, 2007

Banks Using SIVs To Escape Bad Debt

Citigroup, Bank of America and J.P. Morgan Chase, and several other banks are tinkering with a superfund of over $300 billion in "Structured Investment Vehicles" to provide additional liquidity during the next six to nine months as many of their short term notes come due.  The problem stems from bets the banks made with short term debt issued to purchase other long-term assets, including many mortgage-backed securities.  Now that the assets are being written down in value, the banks are looking for a helping hand from anyone who will listen.

Just when we thought we had seen the last of the shell games, dummy corporations, and accounting tricks, the major players in the banking industry are reminding us of everything that went wrong at Enron.  SIVs are nothing more than a creative accounting trick.  As the banks cry foul, we should all keep in mind that the shareholders of these wonderful institutions should bare the brunt of their losses, not the general public.  When the shareholders of our nations biggest banks have to give up their dividends and/or take a hit on their investments, I'm pretty sure we will see more responsible management from the banks.

For more information about real estate and mortgage issues in Katy or West Houston contact Aaron Layman.  He is a licensed real estate broker and mortgage broker.  You can contact him directly at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com.

October 25, 2007

Countrywide Partners With NACA To Fight Foreclosures

Countrywide announced that it will partner with the Neighborhood Assistance Corporation of America to help combat the rising number of foreclosures in it's portfolio of loans.  The announcement came as a bit of a surprise considering the NACA has historically criticized the lenders practices and even accused them of predatory lending.

Borrowers facing foreclosure can apply with the NACA and complete designated education seminars.  In return, Countrywide will restructure loan programs to help eliminate the exploding ARM resets that are causing most of the problems.

More information about the program can be found on the NACA's website:  www.naca.com

For more information about real estate and mortgage issues in Katy or West Houston contact Aaron Layman.  He is a licensed real estate broker and mortgage broker.  You can contact him directly at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com.

October 19, 2007

Re-Zoning Issues In Katy Spark Debate

The Katy ISD zoning committee has some sticky issues to deal with in the next few months as it plans to open two new elementary schools and two new middle schools in 2008.

One bone of contention lies with Avalon Seven Meadows residents.  Many Avalon Homeowners do not want to be re-zoned to the new Seven Meadows elementary when it opens.  Avalon homeowners can currently walk across Fry road to take their children to Griffin, and they would like to keep it that way. 

Another strange scenario has children currently attending Beck Junior High being re-zoned out to Woodcreek to bolster attendance at that school when it opens.  That would be a logistical nightmare and added expense for KISD and the families affected.  Hopefully more logical head will prevail and the committee will focus on the population west of the Grand Parkway to fill that school.

If you have an opinion on the re-zoning issue, feel free to post your thoughts.

For more information about real estate and mortgage issues in Katy or West Houston contact Aaron Layman.  He is a licensed real estate broker and mortgage broker.  You can contact him directly at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com.

Mortgage Resets Cause More Subprime Pain

October will be a painful month for many subprime note holders, with roughly $50 billion in adjustable rate mortgages scheduled to reset.  So far borrowers have had little success in negotiating better deals with their mortgage companies because investors are reluctant to give in and loan servicers are simply overwhelmed.  The foreclosure picture doesn't look to make a significant improvement until sometime in 2008.  A record $100 billion in ARMs will reset in March of 2008.

For more information about real estate and mortgage issues in Katy or West Houston contact Aaron Layman.  He is a licensed real estate broker and mortgage broker.  You can contact him directly at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com.

October 16, 2007

Seven Meadows HOA Meeting Scheduled For Dec 6th

The Seven Meadows Annual Meeting will be held at the Seven Lakes High School 9th Grade Center on December 6th.  2 Board members are scheduled to be elected.  Residents interested in being considered as a candidate can fill out the questionnaire form and turn it in by November 1st.

You can visit www.sevenmeadowslive.com for more information.

For more information about real estate and mortgage issues in Katy or West Houston contact Aaron Layman.  He is a licensed real estate broker and mortgage broker.  You can contact him directly at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com.

October 15, 2007

Phone Companies Passing Off Junk Fees As Taxes

Have you ever looked at you phone bill and wondered about the strange charges?  As it turns out, you should be wondering.  A recent call to Entouch Systems (my local communications provider) left me puzzled.  I called Entouch about the "Res FCC Approved Line Chg" on the telephone portion of my bill and asked to have it removed.  The representative first tried to tell me that the charge was from the FCC.  When I told her that it indeed was not, she said they still couldn't remove it.  The Entouch representative put me on hold to speak with a supervisor, then she again said she could not do anything.

The FCC's Understanding Your Telephone Bill explains the the fallacy in the Entouch rep's argument.  The site clearly states:

  • Access charges are fees charged subscribers or other telephone companies by a local telephone company for the use of its local network.

  • The FCC allows local telephone companies to bill customers for a portion of the costs of providing access. These charges are not a government charge or tax. The maximum allowable access charges per telephone line are set by the FCC, but local telephone companies are free to charge less or not at all. Access charges for second or additional lines at the same residence are higher than the charges for the primary line. These charges can be described on your telephone bill as “Federal access charge,” “Customer or Subscriber Line Charge,” “Interstate Access Charge,” etc.

  • State public service commissions regulate access charges for intrastate (within a state) calls. In some states, a state subscriber line charge may appear on customer bills.

    I am in the process of filing a complaint with the FCC based on this information.  I am curious to see how Entouch will explain it's compliance with the FCC's Truth-in-Billing requirement.  That should be another interesting tap dance.

    I encourage you to contact your phone company and ask them about this junk fee that is being passed off as a tax.  If you have a written response from your phone company with a "supposed" explanation of the fee that you believe to be false, I would like to hear from you.  I'm wondering if there is an attorney out there who would like to take up this issue as a class-action case for consumers in the Houston area.

    For more information about Junk Fees on your phone bill here at two sites that you can visit:

    http://www.fcc.gov/cgb/consumerfacts/understanding.html (FCC)

    http://www.rd.com/content/dont-pay-these-new-hidden-fees/1/ (Reader's Digest Article on Junk Fees)

  • For more information about real estate and mortgage issues in Katy or West Houston contact Aaron Layman.  He is a licensed real estate broker and mortgage broker.  You can contact him directly at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com.

    October 14, 2007

    Tax Loophole For Vacation Homes Closing

    Due to legislation wrapped into a pending mortgage relief bill, owners of second homes will soon find their tax exclusion disappearing.  Under current law, homeowners could take advantage of the 2-out-of- 5 year residence rule and potentially exclude all the capital gains on the sale of two homes by moving and residing in the second home.  That will no longer be the case once the bill passes this fall.  The bill will provide for some transitional relief, but for sales after 2007 the second home will be subject to taxation on capital gains applicable to the rental or vacation status.

    For more information about real estate and mortgage issues in Katy or West Houston contact Aaron Layman.  He is a licensed real estate broker and mortgage broker.  You can contact him directly at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com.

    4 Bedroom 2.5 Bath Home For Sale in Shadowbriar, Houston Texas

    Fabulous 2 story with open floor plan and lots of updates.  Granite counters in kitchen.  Hardwoods in living den area.  Marble in entry.  Beautiful master bath with whirlpool tub and custom tile work throughout.  Mature landscaping and full sprinkler system.  Pool-size back yard.  Convenient Shadowbriar location.

    12214 Piping Rock     $215,000      MLS # 1180896     Status: Pending

    Front_2 For more information about real estate and mortgage issues in Katy or West Houston contact Aaron Layman.  He is a licensed real estate broker and mortgage broker.  You can contact him directly at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com.

    October 12, 2007

    Houston Developers To Share Park Costs

    The Houston City Council passed an ordinance this week requiring developers to make accommodations for parks with all new development.  For every 100 apartments or single-family homes built, developers will now have to provide 1.8 acres for parks and green space.  In lieu of the extra land, developers may opt to pay $700 for each residential unit.  Other major cities already have similar ordinances on the books, so this move was largely anticipated with Houston's recent growth.

    For more information about real estate and mortgage issues in Katy or West Houston contact Aaron Layman.  He is a licensed real estate broker and mortgage broker.  You can contact him directly at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com.