Utah Matters
Federal Home Buyers Tax Credit PDF Print E-mail
Written by Micah Olson   
Tuesday, 10 November 2009 18:38

Have you been looking for some kind of info relating to the Federal Home Buyers Tax Credit?  So has everyone else!  We finally got some info from the feds (organized by the National Association of Home Builders) that should help shed some light on the new money!

At first glance I am disappointed with the way the federal government has designed the expansion.  People who have lived in a home for 5 of the last 8 years are not upside down, and do not really need help as badly as some others.  Also, the goal of the original  credit was two fold.  Reduce the number of homes for sale, and stabilize American families by encouraging them to own homes.  I was surprised that the current government designed a credit that did two good things.  This new addition to the credit does not accomplish anything.  If a home owner decides that they want to buy a home because of this credit, they will likely need to sell their current home (especially in light of Freddie / Fannie rules about including rental income in loan calculations).  So it is a 1 for 1 exchange on the market and does not reduce inventory.  It COULD act to take some of the higher priced homes off the market, and replace them with lower priced homes, but that seems to be the only positive aspect to the expansion.

What are your thoughts?

Last Updated on Tuesday, 10 November 2009 18:53
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New Federal Home Buyer Credit!!! PDF Print E-mail
Written by Micah Olson   
Monday, 02 November 2009 19:20

The $8,000 credit could be expanded very soon!  AND the good news is that you may actually be able to use it!  Harry Reid confirmed last week that they have a bill drafted to extend the credit, and to give a portion of it to "Move Up" buyers.  If they owned their previous home for at least 5 years, they should be able to qualify for up to $6,500!  This announcement came after the feds noticed a 3.6% home sale drop in September.  The thought is that people quit buying, thinking that the credit would be gone by the time they close on the home.

The extension and expansion should have been added to an existing bill set for vote in the VERY near future.  There are a few elements that conservatives wanted to add to the legislation dealing with funding to ACORN,  and requiring that unemployment payouts be verified as going to US citizens prior to payment, but it is likely these will NOT be added.  The extension, and the possibility for non-firstimers to get the credit is good news though regardless of where you thin politically.

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Regulatory Agency for Banks? PDF Print E-mail
Written by Micah Olson   
Tuesday, 15 September 2009 13:57

According to Congress.org, President Barack Obama will renew a push for new financial regulation this week. At the center of the plan is the creation of a Consumer Financial Protection Agency that would regulate things like mortgages and credit cards.

Opponents in the financial industry say the agency would stifle innovation, while supporters say it's necessary in the wake of last year's financial meltdown. Banks and other financial institutions say they are already being regulated by state and federal agencies. They object to fee increases that would fund the new agency.

Supporters say the new agency would be similar to the Consumer Product Safety Commission.  Instead of regulating household goods such as coffee makers, however, it would oversee the terms of mortgages and problems with credit cards. They say the agency could help prevent problems similar to last year's mortgage meltdown.

What do you think?

I have always supported ideas which promote a free market economy.  But what happens in a completely free market, where moral values have slipped, and people are only looking out for themselves?  And I am not talking solely about business leaders.  With Bankruptcy at an all time high, even before the economic meltdown, and consumer spending exceeding consumer savings (meaning people are spending more than they make) it seems that much of the public never learned anything about financial planning or fiscal integrity!  

Was it ok for the federal government to enact new laws to protect us from foreign threats?  Why not to protect us from ourselves, or from large predatory lenders?  But how far should "protection" be taken?  Can banks not learn that when they lend money to people with little financial restraint, and charge over 20% interest, there is a high probability that they will not get paid back?  Can borrowers not learn that times will not always be good, and put a little money away for a rainy day?  In fact are we not seeing that a majority of US citizens have started to learn this lesson?  In March and April the federal government reported that consumer debt has dropped at record levels (see the Time Magazine article).

My opinion...  Leave the financial sector alone Washington.  Let banks fail if they make bad loans, let consumers fail if they borrow irresponsibly.  I think that people are starting to learn.  Lets all teach our kids how to budget, save money, and invest wisely over time to meet specific goals.

 
Interim Day at the House - From Brad Daw PDF Print E-mail
Written by Micah Olson   
Tuesday, 27 October 2009 13:52

Dear Neighbor:

Interim day was the usual flood of information. I’ll try to capture the more interesting parts for you.
In the morning we met as a group of conservatives and had a chance to hear from Roy Spencer. Dr. Spencer is a climatologist that worked for NASA and is now at the University of Alabama, Hunstville. He was a peer with James Hansen at NASA but has come to quite a different conclusion about global warming and its causes. Actually, since hasn’t been warming for the past ten years, I should say global climate change and its causes. I won’t try to repeat what he had to say but you can look at his web site here. 

http://www.drroyspencer.com/


He has a lot of good information that you will find useful in informing your opinion of global climate change and its causes. My take away from my discussion was that we need to continue to study and try to understand our climate and our effect on it. But, we don’t have a clear understanding of our effect on it and we have no assurance that some of the drastic policies being proposed will have a significant or even measurable effect on the climate. The bottom line is that we simply don’t know enough to justify the kinds of heavy-handed policies that are being proposed.
There were some other scientists there and one other web site of interest on the area of global climate change was:

http://scienceandpublicpolicy.org/


This site is more of a blog that combines current news with analysis.
The first committee meeting of the day was Health and Human Services. The most interesting topic is the ongoing push for a more comprehensive sex education curriculum in our public schools. The chair of the committee, Senator Buttars, flew in a doctor by the name of Miriam Grossman to explain the problem with expanding the curriculum. I won’t go into detail here, but Planned Parenthood’s push is nothing about safe sex and everything about promoting and normalizing risky behavior. It was very compelling testimony and at the end of it we passed a motion to raise the bar for running those kinds of bills in the future.

After the meeting, I sat down with a representative from the University of Utah to discuss the coming shortage of doctors. This was in response to a question at the last town hall meeting. The explanation was quite lengthy, but the short answer is that we have been relying on Medicare to fund a significant part of a doctor’s education and that funding is drying up.

At our noon caucus, we had a discussion about pending legislation on forming an independent ethics committee. This is not the deeply flawed petition that is being circulated. This is a thoughtful attempt to create an ethics commission that can be relied on to give an unbiased review of an ethics complaint. As with any bill, there is still work to be done, but they have struck a nice balance between creating a commission that is open enough to not kill genuine complaints and unbiased enough to recognize and dismiss politically motivated complaints. The full bill should be presented to committee at the next interim meeting in November. I’ll send you a link to the full text of the bill then. For now, Representative Fowlke has written an excellent analysis of the ethics petition which you can look at here:

http://utahpolicy.com/featured_article/rep-lori-fowlke-analyzes-ethics-initiative


In the afternoon, we had Health System Reform Task Force. We heard that the exchange is doing well. I would encourage each of you to talk with your employers about getting on the exchange when it opens up to the general public next year. The web site is:

http://exchange.utah.gov/


We didn’t discuss what is going on at the national level regarding health care reform, but I ran across an interesting video about nationalized health care that you might want to see. Here it is:

http://www.youtube.com/watch?v=q9GMKK_fWKg


In the evening, I had a town hall meeting. For the first half hour we had Utah Department of Transportation there to discuss the coming rebuild if I-15 that is already underway. Dal Hawks from UDOT had a lot of good information and the group had a lot of good questions. If any of you want to know more about the rebuild you can go to:

http://i15core.utah.gov/
If you have a question you can send an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it or you can call 1-888-i15core (1-888-415-2673)

After the presentation, I took a few minutes to report on my talk with the University of Utah representative about the coming doctor shortage. After that I took questions on a wide variety of topics ranging all the way from mortgage defaults to energy independence. It was a great meeting and I was glad to have the chance talk over issues.
Thanks to those of you who made it all the way to the end of this letter. As a bonus for reading this far, here is an outstanding article by Walter Williams on the proper role of government. Enjoy.

http://www.hillsdale.edu/images/userImages/mvanderwei/Page_4221/ImprimisSept09.pdf


Thanks again for your desire to be involved and be informed.

 

 
Another Cheap Scam Artist PDF Print E-mail
Written by Micah Olson   
Wednesday, 09 September 2009 20:58

Today I found another Realtor involved in short sale scams.  I wish I could publish names without risk of libel suits. A friend of mine is looking for a home, and as an agent I have been helping them through the process.  (Lucky them that I am a short sale EXPERT!  and they don;t even know!  lol).  We submitted an offer on a property in Utah County and when I called to verify receipt the agent gave me some lame excuse for requesting that my buyers use his title company.  His main slip was saying that the property is in a trust, and thus necessitates the correct title company.  That rose an immediate red flag, so I probed a little further.

"Why do you need a specific title company to handle a trust?"

"Is this offer going to be submitted to the sellers bank?  or an investor?"

"Are you using a trust to circumvent detection of property flipping?  Are you aware that could constitute loan fraud?"

The only answers I got were "I can not verify that, and even if it was the case why does it matter?"

I am really tired of all the dishonest people out in the world.  I guess that we just have to be as knowledgeable as we can, and help people who don;t know what is going on avoid these scams...   We wrote an article about this in July.  You can see it here.

 

If you are buying a home make sure you know if your offer is being submitted to the bank or not.  That is a good starting point.

 
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