I have been reading everything I can find about the new housing bill and trying to find out what everything means. How are we going to help all of these people that are upside down in their homes because of falling real estate values? How do we get them into so much better program because of unscrupulous lenders? How do we help them make their payments when they can't now because the rate just went up when their ARM reset?

The answer seems to be FHA Secure. The end all, cure all of the Real Estate world. Tie it in with a "Short Sale" refinance and all the troubles are over, right? Not so says this voice from the wilderness. The stories I am hearing is #1, the FHA Secure is not that easy to get. Yes, HUD will insure the loan, but there are a lot of provisions for buyback on that insurance. Because of that, the lenders are very, very, very careful as to who they approve for the loan. Item #2, that seems to be lost in the transaction is that the FHA Secure is a significantly higher rate than a standard FHA loan. By significant, I am talking about a 1% increase in the rate. This will often put someone at a higher rate than their ARM was before it adjusted.

Next item, in this market, there are actually downward adjustments happening on some of the ARMs. What does that do? But if you don't take the program now, will it not be available to you later?

Let's talk about the "Short Sale" refinances for a minute. Contrary to congressional belief, banks are in business to make money. They are not going to step up and waive 15% of a loan just because they are asked to. Anyone that has gone through a short sale knows that it may take months and months for the bank to make up their mind and finally go forward or deny it. Do we really think involving the government will make the process smoother? And, if you get it done, the government (not the bank) wants to share in any profit you make when you sell the home. I have gone through some Farm Home sales for low income home owners where this was done, and let me tell you, it isn't pretty.

One of the three biggest lies is: I'm from the government and I'm here to help you. Are you ready for this?

The new bill puts a moratorium on risk based pricing starting in October. I am not sure if this means the 2.25 up front mortgage insurance (UFMIP) will be reduced to 1.5% or not. There are other changes that take effect in October that I will cover in a later blog. I honestly hope this bill does what it is supposed to, but I don't have that much confidence in our elected representatives solving something they helped to create.

Stay tuned, I am sure this isn't even close to being over. I hope that the Real Estate market profits from this bill. I hope that those truely in need get the help they need and deserve. I plan on using FHA loan like I did in the past to help people.

Is it just me or does anyone else get ticked off when you see a DiTech ad on TV. They are advertising an interest rate certainly better than I am offering on a daily basis. So, how do they do it?

Luckily, I have a DVR and am able to pause, rewind, and read the REALLY fine print at the end of the advertisement. I am sure that everyone is totally surprised that the rate they are quoting is not a "par" rate, but instead is one that has 2 (two) (dos) (II) discount points. Of course they cover this with the APR being quoted in the ad. Still, is this really an honest way to market to the consumers? My opinion is that it isn't. What is yours?

Honestly, how many consumers know what the APR actually means? Did you know, for example, the original title of the bill that started this nonsense was entitled, "The Simplification of Interest Act?" Honestly, it has done more to confuse people than almost anything else our elected representatives have done, except for the income tax code.

Another prime example is the radio advertisement campaign that I have to listen to every time I get in the car. It is from Hayes Barnard, Paramount Home Equity in California. Their ads tout another wonderful fixed rate that is also lower than the 30 year fixed rate I am currently offering. Now, on radio there is no fine print, however there is a fast talking (in almost a whisper) announcer explaining the terms of the loan. Surprise, if you listen, really close, you will find out the fixed rate they are offering is a 7 year ARM. Now, as far as I am concerned, this is a Hybrid ARM, not a fixed rate, but again, they are legal because the APR is quoted. Of note, this company was recently finded $500,000 by Washington State for charging and collecting unearned fees, charging consumers to buy down interest rates without actually reducing rates, failing to make required disclosures and making state and federally required disclosures in a deceptive manner. You can read the story here: http://www.oregonlive.com/business/oregonian/index.ssf?/base/business/1216866352224170.xml&coll=7

I don't know, maybe I am not supposed to name names, but it really irritates me when I have to compete against this kind of blatant falsehood. I suppose it is possible that both companies are even represented on Active Rain. If they are, I welcome your comments. For now, I will continue to quote an accurate interest rate and an APR that is also accurate. Also, if I am selling a 7 year ARM (which by the way I think is a pretty good deal), I will definitely tell people up front that is what we are talking about. I won't disguise it as a fixed rate.

Wow, I have seen a lot of blogs about this new legislation. I believe that the President is due to sign it by midweek and it will take care of all of our problems. No more foreclosures. No more sub prime loans with nasty prepayment penalties and rate adjustments. No more dishonesty in the industry.

Yeh, right! If you are interested, the bill (according to the copy I found) is 537 pages long and is written in normal Washington-speak. And, there are pages after pages outlining what will be done by this agency or that agency and how we are stopping foreclosures but making money for the government at the same time.

The one thing I haven't seen posts about, and I might have missed them, is the new government agency created by this bill. "There is established the Federal Housing Finance Agency, which shall be an independent agency of the Federal Government." I guess it has always amazed me that no matter what the economy, the Federal Government is always in a growth spurt. This one gives the new agency "Authority over Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Office of Finance."

The new director of this new "Agency" will have a five year term unless removed for "cause." Then, of course, there will be a Deputy Director, under director, second under director, secretary to the director, secretary to the deputy director, assistant to the director, assistant to the assistant, et. al. OK, maybe I went a little overboard, but we all know how government agencies grow. Naturally, the director will be expected to testify before Congress, more than likely even before he knows anything. I can just imagine the confirmation hearings for this one.

Regulations were partly to blame for getting us into this mess. If it wasn't for the government oversight requiring loans be made to people that couldn't afford them, how much better off would we be now. This bill actually increases the requirement to lend to "classes" of people. Sometimes, I get really fed up with our Fed. Well, enjoy the ride, I am sure it will be interesting.

Well, this weekend was the summer concert series in Oakridge at the Siuslaw amphitheater and it was a lot of fun. I was there on Sunday and enjoyed the music of Taylor's Crossing and Amy Clawson. Taylor's Crossing started about 2 and played until 4. Amy cam on at about 6 and went until the close at 8 p.m.

In two weeks, they are hosting the 3rd anual Mardi Gras fundraiser for the for Musician's Village in New Orleans featuring Kelly Thibodeaux & The E'Touffee Band. This week there was bar-b-que chicken and sausages on sale along with a beer and wine garden. The prices were excellent too, a chicken dinner was only $5 and was mouth watering good. The Mardi Gras features cajun food and the beer garden will be back.

The venue is gorgeous with the amphitheater backing up to the river. There was plenty of space for everyone, but a decent crowd showed up. You should bring your own chair or blanket. Donations are gratefully accepted.

The weather was as nice as could be and the drive uneventful from Springfield. Highway 58 is undergoing some construction near Pleasant Hill and Lowell, but overall there were no major slowdowns. I plan on going back for Mardi Gras, I hope to see you all there.

I don't think there is anything that says EXCLUSIVELY EUGENE more than Saturday Market. And, what describes Saturday Market more than a street musician with a fan watching in a tie dye tee shirt?

The Eugene Saturday Market is held every Saturday from April 5 to November 15, rain or shine. The venue is at the intersection of Oak and 8th Streets. It is open from 10 a.m. to 5 p.m. It is the "flavor" of Eugene. Other places, like the small community to our north, Portland, may have Saturday Market, but it definitely isn't Eugene.

Tie dye is (at least by local legend) is EXCLUSIVELY EUGENE and was founded here. True or not, it definitely is an art form here. Colors, colors and more colors are available in tie dye. You really aren't "Eugene" until you have at least one tie dye outfit.

Food is a major portion of Saturday Market. You can get tofu, you can get pizza, you can get burritos or you can get sushi. Fresh fruit is also a major item on the menu as are smoothies, cookies and lemonade. Experience the far away tastes from Afghanistan and Thailand.  All together, another exciting experience.

Stroll down between the booths. Take a look at all of the wonderful hand made artisan productions. Jewelry, garments and rugs are next door to pottery, speciality items and spiritual readers.

Order something Celtic from a man in a kilt. Where else can you find what you can at the Saturday Market? It is such a collection of articles and people. Enjoy your tour of the bazaar.

And, during the growing season, the Farmer's Market sets up shop across 8th Street with local grown produce, most of it organically grown. I was surprised to find fresh corn on the cob that came from nearby Junction City. I was told they started it in the greenhouse and transplanted it to get it to be ready this early in the year.

So, I recommend the Eugene Saturday Market. It is without a doubt, EXCLUSIVELY EUGENE! You can check out their website at: http://www.eugenesaturdaymarket.org/smhist.html

There certainly aren't any of the people reading this posting that has ever spent any time in a bar talking and drinking with the patrons. Since I grew up watching, picking up and waiting for my father in several, I have some experience in the bar mentality phenomenon. It is really amazing the things that you can see when you are alert and not fogged while spending your time in the local watering hole. Of course, sometimes there are things to be said for not noticing what is going on too.

One of the first things that I learned at my father's bar stool is: don't play the others guy's game. It became pretty obvious that if someone proposed a bet about something for drinks or the like, the one proposing the bet generally had a reason for suggesting that particular bet. For instance, I knew a guy that would bet you he had no belly button (navel for the more anatomically correct among us.) Well, if you think about it, he probably knew more about his anatomy than you do, so why do you suppose he would propose such a bet? I am sure you would not be surprised to know that he didn't have a belly button. It was a result of some surgery earlier in life, but he didn't have one. So, there you have a sucker bet.

The surprising thing is that he would find people to bet him.

Which brings me to the point of this blog? For several years, there have been borrowers playing the other guy's game. That means that they have gotten into loans and products that were wrong for them. It has been my contention for a long time that one of the problems with the sub prime loans was that they were easy and profitable for the loan officer and pushed by the lender. An FHA loan would have been better in the long run (if the customer actually qualified for the purchase) but was harder to get done, so now those same people are looking at costly changes in their loan program. Now, since changes have been made to FHA, they are actually easier than ever to do.

The same thing happened with the "Option ARM," or "Pay-Option ARM," or several other names. One of the good things happening now is that Wachovia, one of the major lenders of these products, is waiving the prepayment penalties for those that want to pay it off. Why was there a pre-payment penalty? Easy to figure this one out, it was because the loan officer made more money with a pre-pay. So, here again, you ended up playing the other guy's game.

As I have posted before, lending should be a win-win transaction. Unfortunately, when played like this, it was a contest, not cooperation. That is my 2 cents worth on this subject for now. Remember, there are products available now to help those in loans they cannot afford. Check with someone that will partner with you for the best results.

* Sorry, but I couldn't resist adding a picture of my grandson. Doesn't have anything to do with the post, but he is so cute as an astronaut. LOL 

The above mural is what you see when you pull up to the Springfield Farmers' market. The market is open every Friday (during the growing season) from 9 a.m. to 3 p.m. The market is located between 5th & 6th Streets on Main Street in downtown Springfield. It is being held in the Springfield Museum parking lot.

When I was there today, there weren't very many vendors, but the ones there seemed to have a lot of great produce that was grown locally. I purchased some yellow grape tomatoes and lemon cucumbers. I guess it was my day to go yellow.

Personally, I can't wait until sweet corn and ripe red tomatoes are on the list of available produce. There were red tomatoes available, but weren't ripe, so I passed. For me, there is nothing better than Willamette Valley sweet corn on the cob. Of course, it should be dripping in butter, that makes it soooo good for you. LOL

Since we had a fairly late spring, I saw something I didn't expect, and that was these outstanding strawberries. Just so you know, our strawberries are the best for flavor. These are really colorful, but I didn't try them for flavor.

There were also colorful flowers on display for sale. If you were hungry, there are also refreshments available. So, try the Springfield Farmers' Market.  See you there!

In a recent post, I said I would post one more of my pictures of my wife's flower garden. I don't have nearly as many flowers this year as previously because my wife isn't here to plant them. I am doing my best to keep things growing though and keep the weeds down.

It amazes me how a weed can grow on a rock but a flower not only requires good soil to grow in, but it also requires regular watering, fertilizer and plenty of space, so it isn't choked out. Weeds though, only require you not to pull them. I know that if I tried to grow dandelions, they wouldn't grow, because I was trying, but since I am not, they do quite well, thank you! Here is the last installment of flowers, I hope you enjoy them as much as Elaine did!

I truely hope you enjoy this last installment. Have a wonderful weekend.

What: Oregon Jamboree

Where: Sweet Home, Oregon (Sankey Park area)

When: August 1, 2 & 3, 2008

Who: Country superstars, soon to be superstars and past superstars

Why: Best country music venue in Oregon

This year's Oregon Jamboree offers something for young and old country music fans. From newcomers Kellie Pickler and Rissi Palmer to venerable Glen Campbell, if you like country music, this is a must see event.

Kellie finished sixth on American Idol's fifth season and she will be performing Saturday, August 2. Rissi just released her self-titled album that is moving up the charts is also on Saturday. Glen Campbell (for those elder statesmen out there, like me) finished first as the Rhinestone Cowboy. He is scheduled for Sunday.

Unbelievable would be the way I describe the lineup of stars. Trace Adkins, Joe Nichols, Neal McCoy, Sugarland, Randy Owen, Confederate Railroad, Phil Stacey, Western Underground and Trent Tomlinson. Topping that off is the comedy of Williams and Ree, billed as "The Indian and the White Guy." I have seen these guys and they crack me up. They hit the stage on Friday.

The festival offers camping (both RV and tent), food booths, beer and wine gardens and several special displays. There will also be the Sweet Home Arts & Crafts Festival on Friday and Saturday with sales booths nearby. According to the website, there were still a few (very few) tent and RV sites available. Call them to be sure, 541-367-8800.

You can find out more about the festival by visiting their website at: http://www.oregonjamboree.com/index.asp.

Rocking out with Trace Adkins singing Honky-Tonk Badonkadonk, or holding the tears back with Sugarland's Stay, all in all, this promises to be another unbelievable weekend in Sweet Home.

By the way, this is not the "first" annual event. The Jamboree was a brainchild of the Sweet Home Economic Development Group to help make up for the lost revenue from timber harvest. Sweet Home had always been a logging town and felt the cut back in available harvest in a very real way. This is their 16^th event and they seem to be getting it right year after year.

(Photos are from the Oregon Jamboree website. Top - Glen Campbell, Middle - Williams & Ree, Bottom - Trace Adkins)

Yesterday marked a pretty bleak day for the Eugene economy. For the news, please check out the following news release:

Seoul, July 24, 2008 - Because of short- and long-term market conditions, which include a steep reduction in the price of memory chips worldwide and accelerated technological migration towards next-generation production standards, Hynix Semiconductor Inc. has decided to close its Eugene fabrication facility. The production of the fabrication plant will be eventually stopped by end of September.

As part of the deliberations that led to this shutdown, Hynix Semiconductor Inc., the parent company of Hynix Semiconductor Manufacturing America Inc., is seriously considering options to utilize our Eugene facilities after the closure. Options include pursuing a similar business to the current semiconductor operation; selling the equipment, building and land as a package to a third-party semiconductor manufacturer; and selling the building and land separately from the equipment which will be relocated. As soon as decisions are finalized, the company will communicate plans to the Eugene community and Oregon government leaders.

Hynix Semiconductor Inc. has also reviewed various options in order to utilize other 200mm wafer fabrication plants located in Icheon and Cheongju, Korea. Some are planned either to produce consumer DRAM and System IC products or to provide foundry service. The remainder will be seriously considered to sell the equipment.

About Hynix Semiconductor Inc.

Hynix Semiconductor Inc. (HSI) of Icheon, Korea, is the world's top tier memory semiconductor supplier offering Dynamic Random Access Memory chips ("DRAMs") and Flash memory chips to a wide range of established international customers. The Company's shares are traded on the Korea Stock Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about Hynix is available at www.hynix.com.

This will mean the loss of 1,100 jobs just at Hynix for the Eugene area. That could also mean loss of up to 2,640 additional jobs figuring that one Hynix job generates an additional 2.4 jobs in the local economy. One of the worst parts of the closure is that Hynix is a "living" wage employer, with many high wage employees. The shake down into the local economy and real estate market could be huge.