Build an online forum for all the parties involved in providing better, more affordable homes to Houston working families.

Thursday, August 18, 2011

3 years late but better than never.


Justice Department is investigating whether Standard & Poor's improperly rated dozens of mortgage securities in the years before the financial crisis, The New York Times reported on Thursday, citing sources familiar with the matter.
The investigation began before S&P, a unit of McGraw-Hill, downgraded the long-term U.S. debt from a AAA rating to AA-plus this month, the paper said.
In the mortgage investigation, the Justice Department has been asking about instances in which S&P analysts wanted to assign lower ratings to mortgage bonds but may have been overruled by S&P business managers, the Times reported.

Wednesday, June 1, 2011

Is S&P honest?

S&P just published their new Case-Shiller index.
It shows a new nation-wide decrease in home values, following their announced "double dip " recession in housing.
The list of MSAs they considered in the study, again, is fascinating.  Houston is not included.  It happened before.  If our memory serves us, Houston MSA ranks usually between 1st and 4th in the nation in homes sales. The last explanation I had seen for this omission amounted to the elimination of a sub group that did not fit the model.  If the sample does not return the results you want, change the sample.
After all this come from a group of people that gave A ratings or higher to some sub prime mortgage bundles. And they are still in business.  
Let us take everything S&P and the rating brotherhood publishes with a grain of salt....even when they threaten to lower the US credit rating.


Friday, April 29, 2011

City of Houston Down Payment Assistance

Yesterday, April 28, the Department of Housing and Community Development of the City of Houston confirmed the availability of funds for down payment assistance.  The $19,500 program is unchanged and is adequately funded for months to come.
In fact, there appears to be over $5,000,000 left to spend of the current year allocation.  The next fiscal year allocation will be available in September.  Even is this allocation is smaller than last years, there should be plenty of money at the current rate of use to reach the end of 2012.

Friday, April 15, 2011

Marginal Score

580 FICO score, there may be a way.
One of our preferred lenders will make loans to borrowers with a 580 score.
The loan must be an 80/20.  However, the $1,9500 down payment assistance combined with our low prices in Kingdom Come, combined with our willingness to increase our contribution to closing costs mean the borrower only needs to come up with $4,000 in total contribution.

The future of Down Payment Assistance in Houston

The Department of Housing and Community Development has just invited many of the participants in the Houston Hope program to a presentation this coming Wednesday (April 20) to present the future of Houston Hope and of the Down Payment assistance.
The Down Payment Assistance program is facing headwinds and uncertainty at a time when federal cuts are combined with a shift of emphasis by the current City administration from single family homes to multi family economic development.  We are all anxious to hear the Department's views of the future.