The new cell phone law took effect on July 1st. Under the California law, all drivers will be prohibited from using handheld wireless devices, including cell phones, while driving beginning July 1. Driver’s 18 and older may use a headset or other hands-free device, but drivers under the age of 18 are prohibited from using any form of wireless telephone communication device while driving, even with a hands-free device. Drivers who violate the new law face fines up to $190.00.
Record number of foreclosures, coupled with tighter lending practices, will make it more difficult for the country to recover from the current housing slowdown, but immigration growth is expected to create a demand for more homes over the next decade, according to a new study released by the Joint Center for Housing Studies at Harvard University. “The State of the Nation’s Housing 2008” says that a return to home affordability levels seen in 2000 will take a combination of continued home-price declines, interest rate reductions, rent deflation, and a boost in consumer spending. The report adds that the credit crunch stemming from the subprime mortgage crises will likely continue to drag on the nation’s economy across several sectors for an unforeseeable amount of time. The study does suggest that immigration is expected to keep up with its current 1.2 million annual pace over the next decade, which, coupled with other social and cultural factors, should feed a consistent rise in demand for more housing.
An additional public comment period of 60 days was announced by the Department of Housing and Urban Development (HUD) on proposed rule Standards for Mortgagor’s Investment in Mortgaged Property. HUD’s proposal to amend its rules on seller-funded downpayment assistance programs is based on ensuring that any downpayment assistance is genuinely a gift and that it will not distort the economics of the mortgage transaction. This rule seeks to disallow downpayment assistance from any entity that derives a financial benefit from the sale of the transaction.
The sub-prime mortgage crisis in the United States and the resulting credit crunch has had negative implications for established countries like Great Britain. However, it hasn’t stopped the real estate boom occurring in developing countries like Mexico, Brazil, the former Soviet Union, Indian and China, which are among the world’s fastest-growing economies. Low interest rates in countries with currencies pegged to the dollar and a shortage of homes that appeal to the growing middle class are bolstering real estate and land values, according to a report issued by Fitch Ratings. Homeownership, which was rare in these countries in the past, is being buoyed by growing housing affordability and economic growth fueled by dramatic increases in disposable income.
Understand your FDIC (Federal Deposit Insurance Corporation) insurance coverage so you can be fully protected if your bank fails. If you (or your family) have $100,000 or less in all of your deposit accounts at the same insured bank, you don’t need to worry about your insurance coverage. Your deposits are fully protected under federal law because the basic insurance coverage is $100,000 per depositor per insured institution.
You may also qualify for more than $100,000 in coverage at one insured bank. For example, the money you have in your individually owned accounts (not including your retirement accounts) is insured up to $100,000 separately from your share of any joint accounts at the same bank. Deposits designated to pass to named beneficiaries upon the death of the owner, such as in payable-on-death accounts, also can be insured for more than $100,000 under certain circumstances. And, some retirement accounts (notably Individual Retirement Accounts) are insured up to $250,000.
For guidance about your FDIC insurance, including how to make sure that all your funds are protected, go to www.fdic.gov/deposit/deposits/index.html to find FDIC brochures, videos and an interactive insurance calculator.
The Economic Recovery Coalition reports that in the 12 months from April 2007 to April 2008, Riverside and San Bernardino counties lost 17,900 jobs. Construction jobs accounted for 15,800 of this loss and financial activities, including banking and real estate, lost an additional 2,800 jobs. Significant job declines were also seen in auto sales, building supplies and retail activities. Obviously, real estate construction and the myriad of economic activities dependent upon it represent a major segment of the Inland Empire’s overall economy. The severe downturn in the region’s construction activity is, over time, a major threat to all sectors of our economy.
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