Team Thayer Property Servicing

The  Financial Stability Oversight Council (FSOC)  was created out of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 in order to bring the financial regulatory community together to respond to risks to the financial system in order to prevent another financial crisis. Attempts are being made by financial industry advocates to weaken the FSOC. Those advocates are accusing the Council of being overzealous in protecting the financial industry. Weakening the FSOC would only prevent the Council from identifying risks to the financial system, therefore putting the country at risk of another devastating financial crisis, according to an  op/ed piece by Deputy Assistant Secretary for the FSOC at the U.S. Department of the Treasury Patrick Pinschmidt  on CNBC on Monday. “Unfortunately, there is legislation pending in both houses of Congress that would heavily tip the scales back in Wall Street's favor and leave our country vulnerable to another ...

Banks need to take steps now to avoid emerging credit risk in today’s financial system in order to prevent another financial meltdown, according to Comptroller of the Currency  Thomas Curry  in a public address on Monday . In a speech at the RMA Annual Risk Management Conference in Boston, Curry stated that the topic of credit risk was muted as recently as 2012 because banks were still in a post-crisis state of recovery and were being extremely cautious with lending—some believe too cautious. Three years ago, however, the need to discuss credit risk was minimal because loan demand was soft, consumer confidence was down, and businesses were reluctant to make loans to only the most creditworthy borrowers. In the last 18 months, however, banks have generally become profitable as economic conditions have improved, unemployment is down, and loan demand has increased, leading Curry to ask: “Where do we go from here? What will it take to ensure that banks remain solvent, stab...

As the number of defaults and foreclosures continues to head toward pre-crisis levels, what effect do you think that will have on the housing industry? One, it’s a step toward normal. Millions of people lost their homes during the foreclosure crisis, and that really took a toll on homeowners, neighborhoods, and home equity. It’s not just people who lost their homes, but people who lost equity and now are underwater. We’re starting to see that rebound, and those numbers are starting to improve, which means folks who were underwater and couldn’t afford to sell are starting to be in a position to sell. That is good news for a housing market that needs inventory. You would think all those foreclosures hitting the market would help inventory, and it did at first. But it kept prices down too much. It depressed prices significantly. But what we saw in 2012 and 2013 is a lot of investors scooped up those foreclosures and turned them into rental housing. They either bought low, flipped it, ...

The  Bureau of Labor Statistics ’ October jobs report released last week far exceeded expectations, generating widespread speculation that the  Federal Reserve  will raise short-term rates in the Federal Open Market Committee’s final meeting of the year in December. San Francisco Fed  President and CEO John C. Williams stated in an  address Friday  that in the past, data that drives economic decisions clearly supported a “patient” approach when it comes to raising rates. That same data, he said, will ultimately determine when the Fed decides to raise rates this time around. Speaking to the Arizona Council on Economic Education in Tempe, Arizona, on Saturday, Williams presented arguments for both sides, and concluded that the data will determine when the rates are raised. On the side of the argument for exercising patience, Williams said there are two main concerns: One, the constraint of the “zero lower bound,” which is to say rates can’t go any...

How to Get Funding to Flip Houses In a perfect World you have some capital set aside to flip houses.  However, you can also use other people's money to flip houses and use only a fraction of your own money. This strategy is called using " Hard Money ."  Hard Money Lenders issue short-term loans for rehabbing houses. Getting a hard money loan is easier than getting a loan from a bank. There is less paperwork and your credit history is not as big of a factor. Often you can receive the funds in 48 to 72 hours. Some Hard Money Lenders issue “ No Doc ” loans. They do not check your credit. They do not look at your income.  However, a No-Doc lender requires a larger down payment than most other Hard Money Lenders.  Keep in mind this is a brief overview of how “Hard Money” works.  Every Hard Money Lender has its own terms, conditions, and policies. Each state has its unique laws, rules, and regulations. How to Find Cheap Houses New investors often ge...