Archive for January 2008
Industry Has Mixed Reaction to Fed Rate Cut
Washington, D.C.–The largest interest rate cut in 18 years, offered Tuesday by the Federal Reserve, is likely to lower certain borrowing costs but may not reinvigorate the economy, USA Today reported Wednesday.The cut, designed to persuade financial institutions to continue to lend money to businesses and consumers, took the benchmark interest rate down by three-quarters…
Read MoreBank of America, Wachovia Earnings Down More Than $6 Billion
Charlotte, N.C.–The second- and fourth-largest U.S. banks–Bank of America Corp. and Wachovia Corp., both headquartered in Charlotte, N.C.–reported a more than $6 billion combined mortgage-related earnings loss Tuesday, Bloomberg reports.Fourth quarter profit fell 95 percent at Bank of America to $268 million. Wachovia’s net income plummeted 98 percent to $51 million.Bank of America’s total fourth…
Read MoreTaskforce Will Watch Chinese Involvement with U.S. Subprime Investments
Beijing–The China Banking Regulatory Commission has created a taskforce to monitor Chinese bank’s exposure to the U.S. subprime market, according to the Financial Times.Senior officials told the Times that China’s banking regulator, headquartered in Beijing, created the group to investigate and issue a monthly report about what subprime holdings China’s largest banks have as the…
Read MoreMerrill Lynch Provides $46M Refinance Loan for 28-Story Apartment Building
Jacksonville Fla.–Merrill Lynch Capital is providing a $46 million first mortgage loan to St. Johns Phase I LLC for its recently completed 295-unit, 28-story luxury apartment building, The Strand, located in Jacksonville Fla.St. Johns will use the funds to refinance an existing construction loan by Pacific Life Insurance Company. “Most of the money will go…
Read MoreHOPE VI Improvement and Reauthorization Act of 2007 Passed in the House
By Anuradha Kher, Online News EditorWashington D.C.–The U.S. House of Representatives has overwhelmingly passed, by a 271 to 30 margin, the H.R. 3524, the HOPE VI Improvement and Reauthorization Act of 2007. This legislation, which ensures all new HOPE VI developments will meet green building criteria and, in that way, helps low-income families across the…
Read MoreThe Fed’s Rate Cut: What It Means for Consumers
Yesterday’s Federal Reserve benchmark interest rate cut wasn’t met with quite the enthusiasm the Fed may have hoped–but it likely will inspire a few positive economic outcomes. (And it probably made Reserve Chairman Ben Bernanke feel a little bit better about the recent New York Times article that questioned his aggressiveness). Wondering what the rate…
Read MoreFed Makes Emergency Rate Cut
In a surprise move today, the Federal Reserve cut the benchmark interest rate by three quarters of a percentage point–the largest single reduction since the Fed began using the rate as the main monetary policy tool about 18 years ago, according to Bloomberg. The Fed Board of Governors also approved a 75-basis-point decrease in the…
Read MoreNew W Hotel and Residences to Open in California’s Orange County
By Erin Brereton, Content ManagerHuntington Beach, Calif.–Starwood Hotels & Resorts Worldwide, Inc. recently announced plans to create a new W hotel and 92 full-service private residences in Huntington Beach, Calif.Owned by an affiliate of Newport Beach, Calif.-based developer Makar Properties LLC, the W Huntington Beach hotel will feature a restaurant, bar, spa and approximately 250…
Read MoreDEAL OF THE DAY: Texas Apartments Receive $4 Million Loan
Beaumont, Texas– Bethesda, Md.-based Green Park Financial recently provided a $4,258,000 acquisition loan for the Autumn Cove Apartments in Beaumont, Texas.Green Park Financial structured the loan with a seven-year term–three years of interest-only payments followed by a 30-year amortization. Jason Rice of Quantum First Capital originated the loan; Andrew Tapley, Green Park Financial senior vice…
Read MoreNew Zealand Is the Most Expensive Place to Buy a Home
Christchurch–New Zealand has the least affordable homes, according to an international survey of the world’s six costliest residential markets, released Monday by an international public policy firm with affiliates in Christchurch and St. Louis.High mortgage interest rates helped New Zealand score higher than Australia for the first time. New Zealand homebuyers have the largest difference…
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