Archive for the 'Government' Category
Oil in Flood water covered under NFIP Plans
Related Posts: Government, Insurance
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FEMA has clarified that in the event of a declared flooding disaster, National Flood Insurance Program coverage will apply even if oil from the British Petroleum deep well blowout in the Gulf of Mexico is mixed with flood waters. The NFIP will bill BP for reimbursement for any claims it pays for covered properties affected by flood waters mixed with oil from the BP spill. In a memorandum issued to insurance industry Write Your Own flood program particpants, James A Sadler, director of Claims for the NFIP, said that oil in flood water is not a new development for the flood insurance program. However, in order for coverage to apply there must first be a definitional flood as described in the Standard Flood Insurance Policy (SFIP), Sadler wrote. Damage caused by the oil in flood waters is covered subject to the provisions of the SFIP.
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The Latest from the BEA
Related Posts: Credit & Finance, Government
hiThe U.S. Bureau of Economic Analysis (BEA) has released its first set of estimates of the major components of gross domestic product (GDP) for the Commonwealth of the Northern Mariana Islands (CNMI). From 2002 to 2007, real GDP of CNMI decreased at an average annual rate of 4.2 percent. Don’t always believe what you hear. You can access these new GDP statistics yourself without the spin at
http://www.bea.gov/newsreleases/general/terr/2010/CNMI_060710.htm.
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Mortgage Rates fell to the lowest this year !
Related Posts: Credit & Finance, Government, Real Estate News
hiMortgage rates fell this week to the lowest level of the year, as rates fell on U.S. government securities. Fixed mortgage rates closely track interest rates paid on long-term Treasury bonds. The average rate on a 30-year fixed rate mortgage dipped to 4.93 percent this week from 5 percent a week earlier. It was the lowest level since mid-December, when rates averaged 4.81 percent.
The drop came as investors shifted money from risky European debt to safer U.S. securities. Bond yields fell as a result, and that lowered mortgage rates. Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.
The average fixed rate dropped to a record low of 4.71 percent late last year, pushed down by a campaign by the Federal Reserve to reduce borrowing costs for consumers. The program ended this spring, but rates have remained low, especially after fears that Greece’s government would default shook world markets.
The last time rates for 30-year fixed mortgages averaged less than 5 percent was the week of March 25, when they were 4.99 percent.
This week, the average rate on a 15-year fixed-rate mortgage was 4.30 percent, down from 4.36 percent last week.
Rates on five-year, adjustable-rate mortgages averaged 3.95 percent, down from 3.97 percent a week earlier. Rates on one-year, adjustable-rate mortgages fell to 4.02 percent from 4.07 percent.
The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount.
The nationwide fee for loans in Freddie Mac’s survey averaged 0.7 of a point for 30-year loans 0.6 of a point for 15 year, 5-year and 1-year loans.
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Justices adopt Florida foreclosure mediation rules
Related Posts: Credit & Finance, Government, Real Estate News
hiLenders will be required to pick up the tab for investigating and verifying ownership and then try mediation before foreclosing Florida home mortgages under new rules approved Thursday by the Florida Supreme Court.
The rules are designed to help Florida’s judicial system better cope with a flood of foreclosures. They follow a December administrative order by Chief Justice Peggy A. Quince telling local judges to adopt a uniform mediation program.
Florida has the nation’s fourth-highest foreclosure rate. Almost 400,000 cases were filed in Florida’s courts last year.
The rules and corresponding legal forms were proposed by a pair of Florida Bar panels.
The investigate-and-verify rule should help prevent those kinds of errors and give judges greater authority to sanction lenders who do make false allegations, the justices wrote.
The decision was unanimous except for a rule that will require prior approval of a judge before a foreclosure sale can be canceled. Justices Charles Canady and Ricky Polston dissented.
Last-minute cancelations have needlessly delayed other sales, again clogging the system.
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Fannie can help with closing costs on foreclosures
Related Posts: Credit & Finance, Government
hiFannie Mae, the largest provider of residential home funding in the United States, announced on Friday that it would start to pay closing costs for buyers of foreclosed homes in its inventory. Buyers of qualified properties will get up to 3.5 percent in closing costs or an equivalent amount for the purchase of new appliances.
Fannie wants to clear out the nearly 50,000 properties it has in inventory – listed on HomePath.com, the Web site created by Fannie Mae last year to sell the growing number of foreclosed homes. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010. Applicable properties can be found on HomePath.com, along with property descriptions, photographs, community and school information, and more.
In addition, some Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing, which offers qualified homebuyers the ability to purchase with as little as 3 percent down.
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