When Taxpayers Welcome Taxes - marijauna

Steven D. Levitt, Freakonomics

It’s not often that you see a quote like this.

Referring to a new tax that will fall squarely on the shoulders of his business and just a few others, Steve DeAngelo said in a CNN article,

  And we decided to step up to the plate and make a contribution to the city in a time of need.

Remarkably, DeAngelo is not just willing to pay this new tax, he actually led the effort to get the tax approved. His business will now have to pay $350,000 in additional taxes next year because of the new tax.

Why is DeAngelo so eager to pay these taxes? I’m almost certain it is not because he is an altruist.

The real answer, I suspect, is that he is generating $19 million a year in revenues selling in a market (medical marijuana) that is barely legal. And DeAngelo probably suspects that taxation will increase the likelihood that his business remains legal, for two reasons.

to see the rest of the story

A dog rescuer's answering machine

A RESCUERS ANSWERING MACHINE: Hello: You have reached ___-____, Tender Hearts Rescue. Due to the high volume of calls we have been receiving, please listen closely to the following options and choose the one that best describes you or your situation:

Press 1 if you have a 10-year-old dog and your 15-year-old son has suddenly become allergic and you need to find the dog a new home right away.

Press 2 if you are moving today and need to immediately place your 150 pound, 8-year-old dog.

Press 3 if you have three dogs, had a baby and want to get rid of your dogs because you are the only person in the world to have a baby and dogs at the same time.

Press 4 if you just got a brand new puppy and your old dog is having problems adjusting so you want to get rid of the old one right away.

Press 5 if your little puppy has grown up and is no longer small and cute and you want to trade it in for a new model.

Press 6 if you want an unpaid volunteer to come to your home TODAY and pick up the dog you no longer want.

Press 7 if you have been feeding and caring for a "stray" for the last three years, are moving and suddenly determine it's not your dog.

Press 8 if your dog is sick and needs a vet but you need the money for your vacation.

Press 9 if you are elderly and want to adopt a cute puppy who is not active and is going to outlive you.

Press 10 if your relative has died and you don't want to care for their elderly dog because it doesn't fit your lifestyle.

Press 14 if you are calling at 6 a.m. to make sure you wake me up before I have to go to work so you can drop a dog off on your way to work.

Press 15 to leave us an anonymous garbled message, letting us know you have left a dog in our yard in the middle of January, which is in fact, better than just leaving the dog with no message.

Press 16 if you are going to get angry because we are not going to take your dog that you have had for fifteen years, because it is not our responsibility.

Press 17 if you are going to threaten to take your ten year old dog to be euthanized because I won't take it.

Press 18 if you're going to get angry because the volunteers had the audacity to go on vacation and leave the dogs in care of a trusted volunteer who is not authorized to take your personal pet.

Press 19 if you want one of our PERFECTLY trained, housebroken, kid and cat friendly purebred dogs that we have an abundance of.

Press 20 if you want us to take your dog that has a slight aggression problem, i.e. has only bitten a few people and killed your neighbor's cats.

Press 21 if you have already called once and been told we don't take personal surrenders but thought you would get a different person this time with a different answer.

Press 22 if you want us to use space that would go to a stray to board your personal dog while you are on vacation, free of charge, of course.

Press 23 if it is Christmas Eve or Easter morning and you want me to deliver an eight week old puppy to your house by 6:30 am before your kids wake up.

Press 24 if you have bought your children a duckling, chick or baby bunny for Easter and it is now Christmas and no longer cute.

Press 25 if you want us to take your female dog who has already had ten litters, but we can't spay her because she is pregnant again and it is against your religion..

Press 26 if you're lying to make one of our younger volunteers feel bad and take your personal pet off your hands.

Press 27 if your cat is biting and not using the litter box because it is declawed, but you are not willing to accept the responsibility that the cat's behavior is altered because of your nice furniture.

Press 28 if your two year old male dog is marking all over your house but you just haven't gotten around to having him neutered.

Press 29 if you previously had an outdoor only dog and are calling because she is suddenly pregnant.

Press 30 if you have done "everything" to housebreak your dog and have had no success but you don't want to crate the dog because it is cruel.

Press 31 if you didn't listen to the message asking for an evening phone number and you left your work number when all volunteers are also working and you are angry because no one called you back.

Press 32 if you need a puppy immediately and cannot wait because today is your daughter's birthday and you forgot when she was born.

Press 33 if your dog's coat doesn't match your new furniture and you need a different color or breed.

Press 34 if your new love doesn't like your dog and you are too stupid to get rid of the new friend (who will dump you in the next month anyway) instead of the dog.

Press 35 if you went through all these 'options' and didn't hear enough. This press will connect you to the sounds of tears being shed by one of our volunteers who is holding a discarded old dog while the vet mercifully frees him from the grief of missing his family.

~Author Unknown, but much appreciated

Mortgage Originations Ready to Explode

By: Tom Kerr | May 06, 2009

Mortgage originations may soon hit a whopping $3.1 trillion, mostly because of a huge surge in mortgage refinances that are expected to continue to boom. With mortgage rates at all-time lows, millions of savvy American homeowners are taking full advantage of them.

The Mortgage Bankers Association now reports that the Federal Reserve's plan to buy up more than a trillion dollars' worth of mortgage assets from the credit markets is actually working. As mortgage rates plummet to levels that haven't been seen in decades, the number of mortgage originations is soaring. 

With house prices at bargain basement levels, Americans have been anxious to get back into the real estate market. They have, however, been naturally skeptical and cautiously tentative as the economy struggles with a global crisis. But a concerted government effort is starting to pay dividends as mortgage rates are dropping, banks are easing credit restrictions, and lenders are seeing a big spike in mortgage refinancing.

New buyers now have 8,000 new reasons to take the leap, because President Obama has created an emergency tax benefit worth $8,000. The savings are available to so-called new homebuyers, which the IRS defines as those people who haven't owned a home within the past three years. Lots of people are in that category these days, even if they used to own a home before the markets peaked. This special tax break doesn't have to be repaid like some of the other tax incentives proposed last year. As tax season coincides with the arrival of springtime-which is the busiest time of year for real estate sales-motivated buyers are starting to shop with real determination to purchase a house and save some cash.

Mortgage refinance explosion

Meanwhile, the volume of mortgage refinances is also going up significantly, and is now at a level that hasn't been seen in about five years. Millions of American homeowners are in a rush to convert their existing loans into more affordable ones at historically cheap mortgage rates before those rates begin to climb back up again, which will likely be soon.
Mortgage originations create busy underwriters

The increased number of mortgage originations and mortgage refinances has caught many lenders off guard and understaffed. Stringent lender guidelines and regulations are essential in order to avoid another mortgage crisis; but with that kind of oversight comes painstaking underwriting that takes time and is labor intensive. Technological enhancements and upgrades are being implemented at many major lending institutions to help speed up the underwriting process, and mortgage companies are hiring more staff. Bank of America CEO Ken Lewis told reporters that his bank, for example, recently added 5,000 new employees just to handle the renewed activity.  

Officials at Fannie Mae also agree that the mortgage business is robust, and they anticipate that the volume of mortgage refinances will continue to grow as more homeowners find out that they're eligible for attractive loan modifications under President Obama's new Making Home Affordable program.

NY Times says allure grows for Reverse Mortgages

By ELSA BRENNER
NY Times, Published: May 1, 2009

RETIREES everywhere whose savings have shriveled in the credit crisis are turning to reverse mortgages to meet their expenses — and in places like Westchester County, where high property taxes also weigh heavily on their shoulders, such loans have become more popular.

For owners 62 or older faced with bad timing, and perhaps hoping for eventual improvement in their portfolios, it can be sensible to stay put, making use of a reverse mortgage to borrow against the equity in the home tax-free, with no requirement to pay the money back as long as the borrower lives in the home.

Describing many of his clients as “house rich and cash poor,” Mr. Krooks explained that this situation affords Westchester retirees “a much-needed, day-to-day income stream to meet their expenses.”

According to the federal government, the volume of reverse mortgages increased 24 percent in March compared with February , setting a national monthly record of 11,261 reverse-mortgage loans. And as the market for them booms, the profile of those using them is expanding, Mr. Lamoreaux said. “It used to be just the 75-year-old widow,” he added, “but that’s not so anymore.”

Nowadays, the loans are becoming more popular both with recent retirees and the very elderly — though the motivations are very different.

Mr. Lamoreaux cited the example of clients of his in their 60’s “who had lived large when they were younger,” owned a vacation home and had taken out two or more mortgages on their primary residence to finance their children’s education. As a result, they had few resources left to carry them through retirement, especially with their investments depleted.

Another couple he counseled had been looking forward to retirement in the next few years and had planned to sell their home in northern Westchester and move, permanently, to their vacation home in North Carolina. Then, last month, the husband was laid off by his company as part of a cost-cutting measure.

The couple faces a new reality: the value of their home has plummeted from its peak two years ago, and the monthly payments on their seven-year interest-only mortgage are about to go up — just as their income is evaporating. They are candidates for a reverse mortgage to help refinance their debt and buy them time to regroup and consider their options.

Another couple, in their late 80s, recently told him their reason for needing a reverse mortgage: “We’re not supposed to be alive to need money to live now, but here we are.”

to learn more, call me Bill Hendrick at 303-440-6900 or email bhendrick@yourloanteam.com

Reverse Mortgage - Suze Orman finally gets it right

Suze Orman video - after bad-mouthing Reverse Mortgages, Suze comes out and explains why using a Reverse Mortgage is better than selling stocks at the bottom!



for more info on Reverse Mortgages, contact:



Bill Hendrick

Home Savings of America

Boulder, CO



303-440-6900



bhendrick@yourloanteam.com

Now That Home Affordable is in Action, a Few Tips

By: Alison Paoli, Zillow PR Coordinator April 21, 2009

As more details emerge about President Obama’s Home Affordable Refinance plan - which was started to help more homeowners refinance into loans with lower monthly costs - we’re finding many people still have questions about how it’s supposed to work, so we wanted to provide you with some more tips. We went right to the experts: three of our friends in the mortgage industry, Justin McHood, John Paunan and Dan Green (who has some of his own tips for refinancing).

Over the last few weeks, we’ve delved into who should qualify for the Home Affordable plan and updated Zillow users on when and how the plan should work. And just last Friday, a reader named Stan commented in the original Home Affordable refinance blog post, saying he got approved for a refi under the plan.

But for those of you who still aren’t sure how to proceed, read on.

One of the best pieces of advice we heard so far was to think of the Home Affordable Refinance program as a typical refinance, but with new loan-to-value parameters (homeowners who owe between 80% and 105% of their home’s value qualify).

There may still be appraisal and fee requirements, but they could vary based upon the individual lender. And, yes, refinancing is a long, drawn-out process; the borrower needs to be patient. While this program is not a quick ‘n easy fix for all, it may help those who have been unable to do a traditional refinance, would like to get a lower rate on their mortgage or would like to refinance out of that adjustable-rate mortgage.

Steps and Tips

1. Check to see if your current mortgage is owned by Freddie Mac or Fannie Mae (if not, you’ll have to pursue a traditional refinance):
a. Fannie Mae’s lookup tool
b. Freddie Mac’s lookup tool

2. If you do have a Fannie Mae or Freddie Mac loan, start gathering the required documents:
a. Most recent pay stub
b. Most recent bank statement
c. Two years’ worth of W-2s and tax returns
d. Most recent mortgage coupon/stub
e. Information about any second mortgage you may have on your home
f. Account balances and minimum monthly payments due on all of your credit cards
g. Account balances and monthly payments on all your other debts such as student loans and car loans

Some lenders may ask for more documentation, but this is a basic list to get started.

3. According to the public relations director at Freddie Mac, if your loan is held by Freddie Mac, you will only be able to refinance through your current servicer or an affiliate. Your servicer is responsible for collecting your monthly loan payments and crediting your account. A servicer also handles your escrow account, if you have one. To find out who your servicer is, look at your most recent mortgage coupon/stub. Call your servicer to find out if they are part in the Home Affordable Refinance program.

4. If your loan is held by Fannie Mae, you have a choice: you can go to your servicer, or shop around for the best rate and find a broker or loan officer that can meet your needs. It’s important to shop around because some lenders may require a minimum credit score while others don’t, and the fees will vary from lender to lender.

5. For loans held by Fannie Mae you can use Zillow Mortgage Marketplace to get immediate, anonymous quotes from thousands of mortgage professionals.

6. Once you find a lender you like and trust, be prepared to sit tight and wait it out. Since the program is brand new, it could take some time for lenders to run at full efficiency.

Red Flags:

During your search for a lender, here are a couple of red flags to be aware of:

1. Beware of mail and e-mail solicitations. If it seems too good to be true, it probably is. In fact, anytime you get a direct mail piece or a telemarketer makes you an offer, be sure to do your research online about the offer, the company and the person.
2. Ask your provider if the lender is placing any price adjustments or extra conditions for approval on your loan. In layman’s terms, ask if they are increasing your interest rate above the base rate for any reason and why. If so, you may want to shop around further.

for more information, please contact Bill Hendrick at bhendrick@yourloanteam.com

How to nab a low-rate home loan

Getting a new loan can save you a bundle, but cautious lenders will make you jump through hoops. These strategies can help.


April 17, 2009

(Money Magazine) -- On paper it seems like the perfect time to refinance. The average rate on a 30-year fixed mortgage recently hit a 20-year low when it fell below 5% in mid-March. And the Fed has said that it will spend $300 billion to buy back government-backed Treasury bonds; that will probably keep loan rates low for months to come.

But wade into the mortgage market, and you may quickly feel as if you're trying to grab a dollar in a game-show booth where the money is blowing around: Those ultralow rates are right in front of you, yet maddeningly elusive.

Lenders, grappling with deadbeat homeowners and shifting regulations, have pared back on mortgage products and upped credit requirements. Still, you have a good incentive to try: If you took out a mortgage two years ago, when rates were in the mid-sixes, you stand to drop your rate nearly two percentage points, saving almost $300 a month on a $300,000 loan. Here's how to navigate the roadblocks.

Figure out if you qualify. Nowadays, credit score and equity are king. To land the best rates, you'll probably need a credit score of at least 740, and 20% equity. "Banks are looking for reasons not to lend you money," says Mark Miskiel of Lighthouse Mortgage in Sedona, Ariz.

If you don't have 20% equity, a refi isn't out of the question - President Obama's housing package allows homeowners who owe as much as 105% to receive government-backed loans. To qualify for that program, however, your original mortgage must be held by one of the government-sponsored entities, Freddie Mac or Fannie Mae; you must prove that you can keep up with payments; and you'll get stuck with fees that tack 0.25% to 3% onto your rate.

Get rid of the HELOC. Home-equity loans and lines have become the enemy of would-be refinancers. Before you can close on a new loan, your home-equity lender must agree to "subordinate" the secondary loan (meaning that your primary lender will get repaid first in the event you run into financial trouble). That can take at least a month, says Bob Moulton of the Americana Mortgage Group in Manhasset, N.Y.

One way to speed up the process is to do a consolidation refi through your home-equity lender. If that's not possible, aim to submit the subordination paperwork as you start shopping for a primary mortgage. And know that other lenders may add up to 0.25% to your rate to cash out the secondary loan.

Know where to look. No matter how stellar your credit, you won't get a great rate without doing some serious shopping. That's because every bank is using different standards for underwriting loans, so while you may look like a risky borrower to one, another may welcome you with open arms. In general, says Keith Gumbinger of mortgage data firm HSH Associates, you're likely to get the best rates from small local banks and credit unions.

Unfortunately, if you need a jumbo loan (typically $417,000, but it can go up to $729,750 in high-cost areas), you can kiss those super-low rates goodbye. While jumbos normally run about half a percentage point higher than smaller ones, today the spread is a point and a half.

New reverse mortgage limits give seniors lifeline

April 17th, 2009

Boston Globe journalist Tom Kelly writes that while job cuts and dwindling investment accounts continue to plague wage-earning households, many seniors continue to wonder how long their once-healthy retirement funds will provide them with the cash needed for their leisure years.
He points to reverse mortgages and how some good news arrived recently for older homeowners who continue to make mortgage payments on their primary residence.

"This is a great opportunity for seniors to tap into additional funds to offset losses they may have experienced in the current economic environment," said Sarah Hulbert, president of Senior Financial Corp., a reverse mortgage lender. "There are a great number of seniors in homes valued significantly over the old limit of $417,000 limit who will be able to maintain or enhance their standard of living through the implementation of this new loan limit."

Darryl Hicks, vice president of the National Reverse Mortgage Lenders Association, a nonprofit trade group based in Washington, D.C., said there is anecdotal evidence that reverse mortgages are helping seniors to avoid foreclosure, but the organization has no hard data to support the claim. NRMLA expects even more activity with the new loan ceilings as seniors look for ways to escape high monthly mortgage payments.

Colorado provides additional help for first-time homebuyers

The Colorado Housing and Finance Authority rolled out a mortgage program Tuesday that advances a new federal tax credit for first-time homebuyers so they can purchase a home more easily.

Under the American Recovery and Reinvestment Act, first-time homebuyers who purchase a property before Dec. 1 can receive 10 percent of the price, up to $8,000, back as a tax credit.
The catch is that many potential buyers don't have enough money to cover the down payment to buy a home and obtain the credit. But if they could qualify, they could, in theory, find a way to make a purchase and get the credit.

CHFA's JumpStart program breaks the trap by lending up to $6,000 or 3.5 percent of a home's purchase price, whichever is less, to cover closing and down-payment costs.
That second mortgage comes with no interest and no payments due until June 30, 2010. CHFA also will provide a 30- year, fixed- rate first mortgage to qualified borrowers.

"First-time homebuyers will be able to leverage the future benefit of the federal tax credit by working with CHFA to access the dollars needed to buy a home today," said U.S. Rep. Ed Perlmutter, D-Colo., who helped unveil the program.

Borrowers are expected to use their tax credit to repay the second mortgage before the June 30 deadline. If they don't, the loan becomes payable over 10 years at 8 percent interest.
"If you don't plan to pay off the second mortgage with the tax credit, then CHFA JumpStart isn't for you," said Karen Harkin, CHFA's director of home finance.
Buyers must also contribute $1,000 of their own money and take a homebuyer education course.
CHFA expects the program to help as many as 1,250 families this year, but Harkin said CHFA would do its best to help as many people as are qualified. "We will find funding for every homebuyer who wants to participate," she said.

The offer, for now, is for a limited time. Perlmutter was noncommittal on whether Congress would renew the first-time home purchase credit for next year.
He said it would depend on the condition of housing markets, with no decision likely until later this year.

Aldo Svaldi: 303-954-1410 or asvaldi@denverpost.com

Pediatric Brain Tumor fund raiser

My buddies Chris and PJ are putting on their annual fundraiser for Pediatric Brain Cancer at the Wits End Comedy Club in Westminster on Saturday May 2. For more details go to: http://www.firstgiving.com/chrisspanos

It's a great cause and the comedy is always a hoot. See you there!