30-YEAR FIXED RATE FALLS TO AT
LEAST A 37-YEAR LOW
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.19 percent with an average 0.7 point for the week ending December 18, 2008, down from last week when it averaged 5.47 percent. Last year at this time, the 30-year FRM averaged 6.14 percent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.
The 15-year FRM this week averaged 4.92 percent with an average 0.7 point, down from last week when it averaged 5.20 percent. A year ago at this time, the 15-year FRM averaged 5.79 percent. The 15-year FRM has not been lower since April 1, 2004, when it averaged 4.84 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.60 percent this week, with an average 0.6 point, down from last week when it averaged 5.82 percent. A year ago, the 5-year ARM averaged 5.90 percent.
One-year Treasury-indexed ARMs averaged 4.94 percent this week with an average 0.5 point, down from last week when it averaged 5.09 percent. At this time last year, the 1-year ARM averaged 5.51 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"Interest rates for 30-year fixed-rate mortgage rates fell for the seventh consecutive week, moving these rates to the lowest since the survey began in April 1971," said Frank Nothaft, Freddie Mac vice president and chief economist. "The decline was supported by the Federal Reserve announcement on December 16th, when it cut the federal funds target to a record low and stated it stood ready to expand its purchases of mortgage-related assets as conditions warrant."
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.
Courtesy of Freddie Mac. © 2008 Freddie Mac
http://www.freddiemac.com/dlink/html/PMMS/display/PMMSOutputWk.jsp?week=51&ending=20081218
Friday, December 19, 2008
Monday, December 1, 2008
New Condominium Laws: A Lot to Digest
New Condominium Laws: A Lot to Digest
BY ROBERT L. KAYE (SPECIAL TO THE MIAMI HERALD)
If you have lived in Florida for any time, there is a high probability that you have had some form of contact with a condominium. There are more than 5,000 condominiums occupied or under construction in Miami-Dade, Broward and Palm Beach Counties, accounting for more than 20,000 individual units. For those who currently live in or will move to a condominium as a permanent or seasonal residence in Florida, the newest changes to condominium laws are important to understand.
The good news is that the Condominium Act (Chapter 718 F.S.) has been significantly amended with several changes benefiting current and future condominium residents.
There also are significant provisions, however, that are poorly written, ambiguous, vague and open to interpretation.
The scope of the statute is diverse but there are three critical areas for residents: insurance, board qualifications and collection of delinquent assessments. The laws affecting insurance and assessment collection were effective as of July 1, and those involving board qualifications went into effect on Oct. 1.
INSURANCE
One of the hottest topics for all involved with condominiums is insurance. The statute provides that for hazard (casualty) policies which begin Jan. 1, 2009, covering such events as storms, hurricanes or even relatively minor water leaks, the association is required to provide primary coverage for all areas of the condominium property as originally installed and any replacements of the same kind or quality.
The associations are also required to cover alterations properly made by the association through the years and places the onus on the association for reconstruction payments after a casualty loss, such as extensive damage from a hurricane.
Condominium unit owners' insurance policies issued after Jan. 1, 2009 for portions of the property that they are to cover will also be required to include extra coverage that includes loss-assessment insurance for no less than $2,000 per occurrence. Additionally, if the association requests proof of a unit owner hazard and liability insurance coverage and the unit owner fails to provide that proof within 30 days, the association has the authority to purchase coverage for the unit owner and assess that unit for the cost.
Other revisions further clarify what falls under the association's responsibility as a common expense. This includes hazard insurance deductibles, uninsured losses and other damages in excess of coverage. All reconstruction and/or repair responsibility following a casualty loss falls to the association to complete, although some of the costs may be apportioned between the association and the affected unit owners.
BOARD QUALIFICATIONS
Generally speaking, to be an effective leader, one should be knowledgeable in all areas under his or her jurisdiction. The new legislation recognizes this and the statute has been revised to address the qualifications necessary to become a board member, requiring that candidates who wish to be board members submit a certificate as proof of their knowledge of their governing documents, as well as the provisions of the Condominium Act.
The goal is to assure condominium residents that new board members will be knowledgeable in the condominium statutes and documents that apply to their condominium, and be better able to effectively manage their community. Also, any director who is delinquent for more than 90 days in assessments is automatically deemed to have abandoned his or her office.
ASSESSMENTS
Another revision to the statute places a larger burden on a condominium association when it is pursuing delinquent unit owners by adding a new step to the process. The association is now required to provide owners 30 days written notice via certified and regular mail before they can place a lien on the property.
Robert L. Kaye, Esq., is the founder and managing shareholder of Robert Kaye & Associates, a commercial law firm based in Fort Lauderdale.
Courtesy: Miami Herald: http://www.miamiherald.com/business/story/793086.html
BY ROBERT L. KAYE (SPECIAL TO THE MIAMI HERALD)
If you have lived in Florida for any time, there is a high probability that you have had some form of contact with a condominium. There are more than 5,000 condominiums occupied or under construction in Miami-Dade, Broward and Palm Beach Counties, accounting for more than 20,000 individual units. For those who currently live in or will move to a condominium as a permanent or seasonal residence in Florida, the newest changes to condominium laws are important to understand.
The good news is that the Condominium Act (Chapter 718 F.S.) has been significantly amended with several changes benefiting current and future condominium residents.
There also are significant provisions, however, that are poorly written, ambiguous, vague and open to interpretation.
The scope of the statute is diverse but there are three critical areas for residents: insurance, board qualifications and collection of delinquent assessments. The laws affecting insurance and assessment collection were effective as of July 1, and those involving board qualifications went into effect on Oct. 1.
INSURANCE
One of the hottest topics for all involved with condominiums is insurance. The statute provides that for hazard (casualty) policies which begin Jan. 1, 2009, covering such events as storms, hurricanes or even relatively minor water leaks, the association is required to provide primary coverage for all areas of the condominium property as originally installed and any replacements of the same kind or quality.
The associations are also required to cover alterations properly made by the association through the years and places the onus on the association for reconstruction payments after a casualty loss, such as extensive damage from a hurricane.
Condominium unit owners' insurance policies issued after Jan. 1, 2009 for portions of the property that they are to cover will also be required to include extra coverage that includes loss-assessment insurance for no less than $2,000 per occurrence. Additionally, if the association requests proof of a unit owner hazard and liability insurance coverage and the unit owner fails to provide that proof within 30 days, the association has the authority to purchase coverage for the unit owner and assess that unit for the cost.
Other revisions further clarify what falls under the association's responsibility as a common expense. This includes hazard insurance deductibles, uninsured losses and other damages in excess of coverage. All reconstruction and/or repair responsibility following a casualty loss falls to the association to complete, although some of the costs may be apportioned between the association and the affected unit owners.
BOARD QUALIFICATIONS
Generally speaking, to be an effective leader, one should be knowledgeable in all areas under his or her jurisdiction. The new legislation recognizes this and the statute has been revised to address the qualifications necessary to become a board member, requiring that candidates who wish to be board members submit a certificate as proof of their knowledge of their governing documents, as well as the provisions of the Condominium Act.
The goal is to assure condominium residents that new board members will be knowledgeable in the condominium statutes and documents that apply to their condominium, and be better able to effectively manage their community. Also, any director who is delinquent for more than 90 days in assessments is automatically deemed to have abandoned his or her office.
ASSESSMENTS
Another revision to the statute places a larger burden on a condominium association when it is pursuing delinquent unit owners by adding a new step to the process. The association is now required to provide owners 30 days written notice via certified and regular mail before they can place a lien on the property.
Robert L. Kaye, Esq., is the founder and managing shareholder of Robert Kaye & Associates, a commercial law firm based in Fort Lauderdale.
Courtesy: Miami Herald: http://www.miamiherald.com/business/story/793086.html
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