Bailout of mortgage giants should result in lower mortgage costs and make credit more available. But lending standards will stay tight and risky borrowers will still pay extra fees.
NEW YORK (CNNMoney.com) -- Mortgage applicants rejoice!
Sunday's federal takeover of Fannie Mae and Freddie Mac will likely translate into lower mortgage rates and greater availability of credit, experts said. Rates could drop by 1 percentage point from the stubbornly-high 6.39% for a 30-year fixed rate mortgage.
"This could be good for would-be homeowners," said Tom LaMalfa, managing director, Wholesale Access, a research and consulting firm. "It would reduce the cost of financing at the new and improved Fannie and Freddie."
The government bailout is aimed at making mortgages easier to obtain and afford. By shoring up the mortgage financing giants, they can continue buying mortgages from lenders and injecting much-needed cash into the system.
"Fannie Mae and Freddie Mac are crucial to turning the corner on housing," said Treasury Henry Paulson. "Therefore, the primary mission of these enterprises now will be to proactively work to increase the availability of mortgage finance. Our economy and our markets will not recover until the bulk of this housing correction is behind us."
But the news isn't all good. With Friday's report that foreclosures and delinquencies are at all-time highs, Fannie and Freddie are expected to maintain - if not ratchet up - tighter lending standards. And the fees they have introduced for borrowers with weaker credit histories won't go away anytime soon.
High borrowing costs
Mortgage rates borrowers pay are dependent on the yields that investors demand when buying mortgage-backed securities from Fannie and Freddie.
Investors' doubts about the companies' viability have sent interest rates on those securities soaring. Despite regulators' July promise that they would step in to save the mortgage companies, investors are still demanding rates of 2.25% to 2.45% above Treasuries, LaMalfa said. Historically, the spread has been 1.25%.
With the government now taking over the companies and minimizing the risk associated with their debt, investors may be willing to ease off their need for higher rates.
High borrowing costs have led, in part, to a decline in mortgage borrowing. Applications are down 27% from a year ago, according to the Mortgage Bankers Association.
Also Fannie (FNM, Fortune 500) and Freddie (FRE, Fortune 500) will likely reverse their recent pullback from the mortgage markets. In early August, when they reported just over $3 billion in combined second-quarter losses, both said they would scale back their purchases of mortgage securities to preserve their capital.
Tight standards and fees will remain
Borrowers, however, shouldn't expect the ever-tightening lending standards to ease. With defaults and delinquencies multiplying and home prices falling, Fannie and Freddie will likely keep a close eye on underwriting practices. Lenders are demanding credit scores above 700 these days, up from 620 in the past, and downpayments of 20%, up from zero in some cases, experts said.
The mortgage titans have also increased their fees in hopes of shoring up their finances. Just last month, Fannie Mae announced higher surcharges for loans to weaker borrowers. For instance, applicants with credit scores between 640 and 659 who are putting down 15% to 20% will pay an additional 2.25% charge.
The same borrower would pay 1.7 percentage points mor e because of higher fees and rates for the same loan today as he or she would have paid 18 months ago, LaMalfa said.
If the market continues to worsen, standards could further tighten and fees could rise more, he said.
"We may have more stringent standards over the next few weeks because of the continued deterioration," he said. "We don't know where the bottom is yet. It's a falling knife."
Also, while investors have initially cheered regulators' moves in the past, their confidence has been short-lived. It remains to be seen whether and for how long Sunday's action will placate them, said Kurt Eggert, law professor at the Chapman University School of Law. And if investors' spook again, rates will rise.
"If I were an investor, I'm not sure this would be enough to make me want to jump in with a lot of money," Eggert said.
First Published: September 7, 2008: 2:53 PM EDT
The next shoe to drop in housingU.S. seizes Fannie and FreddieRescue cost: The big unknown
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Monday, September 8, 2008
Lewisville ISD
The Lewisville Independent School District prides itself on its long-standing tradition of educational excellence. With more than 18 schools receiving the “Exemplary” rating and 28 schools earning the “Recognized” rating by the Texas Education Agency, families move into LISD because of our commitment to student success. LISD also has six National Blue Ribbon Schools of Excellence, which is the highest designation a school can earn by the United States Department of Education.
Annually, our district receives numerous academic accolades and finance awards, which is a reflection of our quality teachers and staff. LISD’s highly qualified team is what makes our district a premiere school system in Texas!
Serving more than 50,000 students, our district has been experiencing rapid growth during the past 15 years, and will continue to grow on average between 1,200-2,000 new students annually until 2016. In eight short years, LISD is projected to serve approximately 60,000 students.
Encompassing 127-square miles, LISD serves all of or portions of thirteen municipalities including Argyle, Carrollton, Copper Canyon, Double Oak, Flower Mound, Frisco, Grapevine, Highland Village, Hebron, Lewisville, Plano and The Colony.
Click on the link below and go directly to Lewisville ISD web site.
http://www.lisd.net/info/about/index.html
Annually, our district receives numerous academic accolades and finance awards, which is a reflection of our quality teachers and staff. LISD’s highly qualified team is what makes our district a premiere school system in Texas!
Serving more than 50,000 students, our district has been experiencing rapid growth during the past 15 years, and will continue to grow on average between 1,200-2,000 new students annually until 2016. In eight short years, LISD is projected to serve approximately 60,000 students.
Encompassing 127-square miles, LISD serves all of or portions of thirteen municipalities including Argyle, Carrollton, Copper Canyon, Double Oak, Flower Mound, Frisco, Grapevine, Highland Village, Hebron, Lewisville, Plano and The Colony.
Click on the link below and go directly to Lewisville ISD web site.
http://www.lisd.net/info/about/index.html
Incentives for Old Town.
Old Town Incentives
The City of Lewisville is positioned to aggressively participate in both public and private projects that will bring new value into the Old Town area. This participation may be in the form of land acquisition, financing, fast-track permitting, tax relief, infrastructure assistance or other forms of public/private partnerships. Projects that are being sought are single family development/redevelopment, multi-family projects, office uses, retail establishments and mixed-use residential/commercial projects. Incentive consideration for projects in Old Town Lewisville will be based upon several factors including but not limited to location, type of project, economic impact of the project to Old Town specifically, Lewisville as a whole, and/or architectural style of the project.Old Town Center District
Retail Incentive
Retail or Restaurant establishments constructing a new facility or making interior improvements to an existing building may qualify for a reimbursement of costs associated with finish out. Click on the link below for further details.Retail Incentive Information Tax Increment Reinvestment Zone #1 (TIRZ)
Those projects that are within the boundaries of the Lewisville Tax Increment Reinvestment Zone, Number One, or modifications thereto may qualify for the following incentives. It is the intent of this incentive area to provide additional options to retail, restaurant, office and higher-density residential projects that are enhancing the aesthetic appearance of properties to a character that is harmonious with Old Town Lewisville. Aesthetic Incentive Projects that are will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the Downtown Investment Area may be considered for an Aesthetic Incentive. Such Incentives may only be used for exterior improvements on properties which promote and enhance the Old Town character and comply with signage and architectural standards, or a valid waiver thereof. Projects that are approved to receive an Aesthetic Incentive may be required to enter into an Architectural Façade Easement with the City of Lewisville. Construction Materials Sales Tax Rebate Incentive Projects that will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the TIRZ #1 may be considered for a rebate of Sales Taxes. Sales Tax rebates will only be considered for the City of Lewisville portion of sales taxes reported and paid in the City of Lewisville on construction materials or supplies directly related to the approved project. Retail & Restaurant Establishments Incentive Retail & Restaurant Establishments that will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the TIRZ #1 may be considered for a rebate of Sales and Use Taxes and/or Alcoholic Beverage Sales and Use Taxes. Sales Tax rebates will only be considered for the City of Lewisville portion of sales taxes reported and paid in the City of Lewisville. Incentive will be a maximum of one-hundred percent (100%) for three (3) years.Beautification Program To provide a program that encourages the construction, protection or restoration of public features that provides a unique atmosphere and amenity to both pedestrians and motorists within the Lewisville Tax Increment Reinvestment Zone, Number 1. Such features should improve the visual appearance of the Old Town area, which is critical both to the success of individual businesses and to the economic health and vitality of the district and City as a whole. Eligible Improvements. Funds shall be used for the enhancement of exterior beautification elements. Interior renovation and restoration elements of the project are not eligible for funding under this program.
Some of the eligible improvements are:CanopiesSignsPublic ArtClocksWater FeaturesLandscapingSeating areas or Benches
Old Town IncentivesThe City of Lewisville is positioned to aggressively participate in both public and private projects that will bring new value into the Old Town area. This participation may be in the form of land acquisition, financing, fast-track permitting, tax relief, infrastructure assistance or other forms of public/private partnerships. Projects that are being sought are single family development/redevelopment, multi-family projects, office uses, retail establishments and mixed-use residential/commercial projects. Incentive consideration for projects in Old Town Lewisville will be based upon several factors including but not limited to location, type of project, economic impact of the project to Old Town specifically, Lewisville as a whole, and/or architectural style of the project.Old Town Center District
Retail Incentive
Retail or Restaurant establishments constructing a new facility or making interior improvements to an existing building may qualify for a reimbursement of costs associated with finish out. Click on the link below for further details.Retail Incentive Information Tax Increment Reinvestment Zone #1 (TIRZ)
Those projects that are within the boundaries of the Lewisville Tax Increment Reinvestment Zone, Number One, or modifications thereto may qualify for the following incentives. It is the intent of this incentive area to provide additional options to retail, restaurant, office and higher-density residential projects that are enhancing the aesthetic appearance of properties to a character that is harmonious with Old Town Lewisville. Aesthetic Incentive Projects that are will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the Downtown Investment Area may be considered for an Aesthetic Incentive. Such Incentives may only be used for exterior improvements on properties which promote and enhance the Old Town character and comply with signage and architectural standards, or a valid waiver thereof. Projects that are approved to receive an Aesthetic Incentive may be required to enter into an Architectural Façade Easement with the City of Lewisville. Construction Materials Sales Tax Rebate Incentive Projects that will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the TIRZ #1 may be considered for a rebate of Sales Taxes. Sales Tax rebates will only be considered for the City of Lewisville portion of sales taxes reported and paid in the City of Lewisville on construction materials or supplies directly related to the approved project. Retail & Restaurant Establishments Incentive Retail & Restaurant Establishments that will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the TIRZ #1 may be considered for a rebate of Sales and Use Taxes and/or Alcoholic Beverage Sales and Use Taxes. Sales Tax rebates will only be considered for the City of Lewisville portion of sales taxes reported and paid in the City of Lewisville. Incentive will be a maximum of one-hundred percent (100%) for three (3) years.Beautification Program To provide a program that encourages the construction, protection or restoration of public features that provides a unique atmosphere and amenity to both pedestrians and motorists within the Lewisville Tax Increment Reinvestment Zone, Number 1. Such features should improve the visual appearance of the Old Town area, which is critical both to the success of individual businesses and to the economic health and vitality of the district and City as a whole. Eligible Improvements. Funds shall be used for the enhancement of exterior beautification elements. Interior renovation and restoration elements of the project are not eligible for funding under this program.
Some of the eligible improvements are:CanopiesSignsPublic ArtClocksWater FeaturesLandscapingSeating areas or Benches
Click on the link below for more city information on Old Town.
http://www.cityoflewisville.com/wcmsite/publishing.nsf/Content/Old+Town+
The City of Lewisville is positioned to aggressively participate in both public and private projects that will bring new value into the Old Town area. This participation may be in the form of land acquisition, financing, fast-track permitting, tax relief, infrastructure assistance or other forms of public/private partnerships. Projects that are being sought are single family development/redevelopment, multi-family projects, office uses, retail establishments and mixed-use residential/commercial projects. Incentive consideration for projects in Old Town Lewisville will be based upon several factors including but not limited to location, type of project, economic impact of the project to Old Town specifically, Lewisville as a whole, and/or architectural style of the project.Old Town Center District
Retail Incentive
Retail or Restaurant establishments constructing a new facility or making interior improvements to an existing building may qualify for a reimbursement of costs associated with finish out. Click on the link below for further details.Retail Incentive Information Tax Increment Reinvestment Zone #1 (TIRZ)
Those projects that are within the boundaries of the Lewisville Tax Increment Reinvestment Zone, Number One, or modifications thereto may qualify for the following incentives. It is the intent of this incentive area to provide additional options to retail, restaurant, office and higher-density residential projects that are enhancing the aesthetic appearance of properties to a character that is harmonious with Old Town Lewisville. Aesthetic Incentive Projects that are will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the Downtown Investment Area may be considered for an Aesthetic Incentive. Such Incentives may only be used for exterior improvements on properties which promote and enhance the Old Town character and comply with signage and architectural standards, or a valid waiver thereof. Projects that are approved to receive an Aesthetic Incentive may be required to enter into an Architectural Façade Easement with the City of Lewisville. Construction Materials Sales Tax Rebate Incentive Projects that will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the TIRZ #1 may be considered for a rebate of Sales Taxes. Sales Tax rebates will only be considered for the City of Lewisville portion of sales taxes reported and paid in the City of Lewisville on construction materials or supplies directly related to the approved project. Retail & Restaurant Establishments Incentive Retail & Restaurant Establishments that will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the TIRZ #1 may be considered for a rebate of Sales and Use Taxes and/or Alcoholic Beverage Sales and Use Taxes. Sales Tax rebates will only be considered for the City of Lewisville portion of sales taxes reported and paid in the City of Lewisville. Incentive will be a maximum of one-hundred percent (100%) for three (3) years.Beautification Program To provide a program that encourages the construction, protection or restoration of public features that provides a unique atmosphere and amenity to both pedestrians and motorists within the Lewisville Tax Increment Reinvestment Zone, Number 1. Such features should improve the visual appearance of the Old Town area, which is critical both to the success of individual businesses and to the economic health and vitality of the district and City as a whole. Eligible Improvements. Funds shall be used for the enhancement of exterior beautification elements. Interior renovation and restoration elements of the project are not eligible for funding under this program.
Some of the eligible improvements are:CanopiesSignsPublic ArtClocksWater FeaturesLandscapingSeating areas or Benches
Old Town IncentivesThe City of Lewisville is positioned to aggressively participate in both public and private projects that will bring new value into the Old Town area. This participation may be in the form of land acquisition, financing, fast-track permitting, tax relief, infrastructure assistance or other forms of public/private partnerships. Projects that are being sought are single family development/redevelopment, multi-family projects, office uses, retail establishments and mixed-use residential/commercial projects. Incentive consideration for projects in Old Town Lewisville will be based upon several factors including but not limited to location, type of project, economic impact of the project to Old Town specifically, Lewisville as a whole, and/or architectural style of the project.Old Town Center District
Retail Incentive
Retail or Restaurant establishments constructing a new facility or making interior improvements to an existing building may qualify for a reimbursement of costs associated with finish out. Click on the link below for further details.Retail Incentive Information Tax Increment Reinvestment Zone #1 (TIRZ)
Those projects that are within the boundaries of the Lewisville Tax Increment Reinvestment Zone, Number One, or modifications thereto may qualify for the following incentives. It is the intent of this incentive area to provide additional options to retail, restaurant, office and higher-density residential projects that are enhancing the aesthetic appearance of properties to a character that is harmonious with Old Town Lewisville. Aesthetic Incentive Projects that are will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the Downtown Investment Area may be considered for an Aesthetic Incentive. Such Incentives may only be used for exterior improvements on properties which promote and enhance the Old Town character and comply with signage and architectural standards, or a valid waiver thereof. Projects that are approved to receive an Aesthetic Incentive may be required to enter into an Architectural Façade Easement with the City of Lewisville. Construction Materials Sales Tax Rebate Incentive Projects that will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the TIRZ #1 may be considered for a rebate of Sales Taxes. Sales Tax rebates will only be considered for the City of Lewisville portion of sales taxes reported and paid in the City of Lewisville on construction materials or supplies directly related to the approved project. Retail & Restaurant Establishments Incentive Retail & Restaurant Establishments that will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the TIRZ #1 may be considered for a rebate of Sales and Use Taxes and/or Alcoholic Beverage Sales and Use Taxes. Sales Tax rebates will only be considered for the City of Lewisville portion of sales taxes reported and paid in the City of Lewisville. Incentive will be a maximum of one-hundred percent (100%) for three (3) years.Beautification Program To provide a program that encourages the construction, protection or restoration of public features that provides a unique atmosphere and amenity to both pedestrians and motorists within the Lewisville Tax Increment Reinvestment Zone, Number 1. Such features should improve the visual appearance of the Old Town area, which is critical both to the success of individual businesses and to the economic health and vitality of the district and City as a whole. Eligible Improvements. Funds shall be used for the enhancement of exterior beautification elements. Interior renovation and restoration elements of the project are not eligible for funding under this program.
Some of the eligible improvements are:CanopiesSignsPublic ArtClocksWater FeaturesLandscapingSeating areas or Benches
Click on the link below for more city information on Old Town.
http://www.cityoflewisville.com/wcmsite/publishing.nsf/Content/Old+Town+
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