Remember that list Wells Fargo was reportedly passing around–mentioned in Thursday’s blog last week–of new area-specific lending limits? It seems some banks are taking the restrictions to a new level. According to CNNMoney.com, some lenders are trying a new method to protect themselves against the subprime fallout: And it’s bad news for residents in high-risk areas like South Florida and Las Vegas. BankUnited–a unit of BankUnited Financial Corp.–and Vertice, a wholesale lending unit of Wachovia Corp., are among the lenders CNN.com reports are electing to not lend to certain areas, a decision that is forcing prices down even further in…

The recent Fed cuts increased business at mortgage companies like LendingTree.com–and decreased their need for advertising. The day after the last rate cut, LendingTree.com had a record amount of traffic. As a result, its marketing team immediately reduced its search engine ad campaigns, according to The New York Times. That may be good news for LendingTree.com, but it’s certainly not good news for the search engine ad sector, which has reaped considerable profits from financial services clients over the years. The Decline Goes Online Although the housing slump began in 2007, its effects on online advertising are just beginning to…

Wondering what the worst housing markets in the country are? Wells Fargo has made a list. Wells Fargo–the second-largest U.S. provider of home loans–denoted "soft," "distressed" or "severely distressed" markets in 24 states and Washington, D.C. in a document sent to mortgage brokers this week, according to Reuters. The list identified more than 200 troubled markets. Wells Fargo will restrict lending in those areas starting tomorrow, by limiting loan size to a percentage of home values–no matter how safe the borrower seems. The markets include: At least 33 risky markets in California, with a minimum of 20 counties, including Los…

Common items are getting more expensive, and consumers are losing faith in the economy, according to data released on Tuesday. Which is not good news for those hoping to prevent a recession (I’m guessing that would include pretty much everyone). The Conference Board said its index of consumer confidence for February dropped to 75–below expectations, and the lowest reading in 15 years (except for during the 2003 Iraq War). Consumers are down about the current and upcoming economy, according to The Wall Street Journal. To be honest, the Conference Board didn’t sound so confident, either. "With so few consumers expecting…

Condo and apartment property managers deal with many resident repairs–some of which are the building’s responsibility, some of which aren’t. As I type this, a contractor is replacing my front door–in part because my circa-1985 door began splitting like a wishbone a week ago (the hallway got the larger half–so make a wish, elevators!), and in part (of course) because I believe in supporting the remodeling and repair industry. Yet the experience has illustrated a few methods that can make the repair/remodel process smoother for property managers, contractors and residents–who are often all working independently for the same goal: A…

On Friday, we discussed how some celebrities seem to have unusual luck in the real estate market–and why some buildings are using celebrities as a marketing tools. However, some people could care less about whether or not a famous person is attached to the home they want to buy. And–especially in today’s market–celeb power alone may not sell a unit. The Star Sell: Not for Everybody A star owner or neighbor, in some cases, may up the value or quicken the sale of a condo or apartment. But celebrity tie-ins aren’t popular with all developers–or with all celebrities, for a…

Selling a home is no easy task these days–unless you’re famous. Forget how easy it must be to finance a home if you make millions. The real perks of being a star involve living at a luxury address that was owned previously by another celeb and/or features famous neighbors. (P. Diddy paid $5 million for his three-bedroom Park Imperial Manhattan apartment–which came with great views and neighbors Tommy Mottola and Deepak Chopra.) And–of course–those perks also involve being able to said the home easily when you decide it’s time for another. While celeb mansions may be the norm in L.A.,…

The next sector to be hurt by the housing slump? Small businesses, according to USA Today. A ripple effect could threaten small companies when larger companies–such as homebuilders and developers–see losses and cut jobs, says James Barrood, executive director of Fairleigh Dickenson University’s Rothman Institute of Entrepreneurial Studies. The effect a reduced housing demand has on builders and developers spreads directly to building material suppliers and vendors; which then decreases business activity in industries like travel and business equipment. Just look at California. The state’s weakening housing industry is expected to slow payroll employment growth in the state for the…

When the economic stimulus checks start making their way to our mailboxes later this year, the government is hoping we’ll all cash them and promptly go shopping. In the last round of rebates, in 2001, many did: according to Citigroup, 25 percent of the rebates issued in 2001 were spent at Wal-Mart alone. But it’s unclear how Americans will spend the rebates this time. The economy is unquestionably worse; housing starts are at their lowest level since 1991, according to Commerce Department data released Wednesday. And everyday living is getting more expensive. The CPI rose by 0.4 percent again in…

Yesterday, we discussed the prime mortgage market’s difficulties–which include homeowners with good credit falling behind on their payments. The causes are similar to the factors that pushed the subprime sector into rocky waters. And–even though considerably less troubled prime borrowers exist–the prime defaults are cause for concern. What’s next? Well, according to the Mortgage Bankers Association, the highest rate of prime mortgages since the MBA began tracking prime and subprime mortgages in 1998 were delinquent or in foreclosure at the end of September. As the country tries to spur residential building and the housing market by unloading some of its…