News

Washington, D.C.–Claiming it would hurt mortgage lenders and prolong the housing slump, Senate Republicans blocked a Democrat-sponsored bill to assist the troubled housing industry Thursday, the Washington Post reports.The Senate failed to gain the necessary 60 votes to end a proposed housing bill filibuster. The bill earmarks billions of dollars for local communities to purchase subprime mortgages and would allow a revision of bankruptcy laws to let judges cut interest rates for low-income homeowners.The mortgage industry has expressed disapproval of the bill; President Bush Thursday said that he wanted to give the $168 billion stimulus bill a chance to “kick…

Chicago–Treasury Secretary Henry Paulson told a crowd at the Economic Club of Chicago Thursday that he does not support a government-backed homeowner bailout, the Chicago Tribune reports.Less than 2 percent of home mortgages are in foreclosure, Paulson said.”So, while some in Washington are proposing big interventions, most of the proposals I’ve seen would do more harm than good,” he said. “I’m not interested in bailing out investors, lenders and speculators. I’m focusing on solutions targeted at struggling homeowners who want to keep their homes.”In addition, Paulson said homeowners are responsible for asking for help, and that if a home’s value…

Charlotte, N.C.–Top executives from Charlotte, N.C.-based Bank of America and Wachovia–as well as executives at JPMorgan Chase in New York–have seen an increasing number buyers walk away from mortgages in recent months, The New York Times reported Friday.The homeowners are more interested in getting out of their current mortgages than in renegotiating or defaulting. Some companies, such as San Diego-based You Walk Away, surrenders homes to banks for a $995 cost to homeowners.Shrinking downpayments–last year, the median downpayment showed a 20 percent drop from 1989, according to a National Association of Realtors survey–and heavy borrowing to cover closing costs and…

New York–American International Group declared almost $15 billion in subprime mortgage-related writedowns and losses Thursday, the Financial Times reports.The New York-based insurer’s net loss for the fourth quarter was $5.29 billion as a result. Full-year earnings were reduced by more than half to $6.2 billion.AIG expects the U.S. housing market to stay soft and feels credit market chaos will continue, said chief executive Martin Sullivan.Nearly $11.5 billion of the writedowns were connected to AIG’s dealings in collateralized debt obligations (CDO), which are often backed by subprime mortgage bonds. The company also posted $3.3 billion worth of charges due to the…

By Anuradha Kher, Online News EditorChicago–Construction costs for multifamily projects are continuing to rise, obtaining entitlements is getting harder and the condominium market is in trouble, according to the Real Estate Research Corp. quarterly real estate report, titled “Uncovering the Facts-Risk Under Examination.”About 18 months ago, the market for condominiums was enjoying a solid five- to six-year run. Today, however, many areas of the nation are scattered with “busted” condos, some of them under construction or just completed, others that are condominium conversions and partially sold. “The formerly most-booming “boom areas”—Florida, Arizona, Nevada, and California—have the largest inventory of busted…

Robert C. Landis Joins Raymond James Tax Credit FundsSt. Petersburg, Fla.–Robert C. Landis has joined Raymond James Tax Credit Funds Inc., a wholly owned subsidiary of Raymond James Financial and an investor in affordable housing, as the company’s vice president and director of asset management. As vice president and director, Landis is responsible for managing a multi-billion dollar portfolio of more than 1,100 Low Income Housing Tax Credits partnerships in 43 states. Prior to joining Raymond James Financial, Landis served as president of Lane Management LLC in Atlanta, and as senior vice president with both Alliance Residential Management and United…

By Anuradha Kher, Online News EditorPhiladelphia–Gebroe-Hammer Associates, an investment real estate sales organization based in Livingston, N.J., recently negotiated the sale of a 26-unit apartment building in Philadelphia’s East Mt. Airy neighborhood for $1.525 million.Ardleigh Gardens, located at 615 East Upsal St., near the Shelton Avenue and Germantown Avenue shopping districts, is fully occupied and features 21/2-story walk-up units. Each floor offers one- or two-bedroom layouts. “This building is in truly excellent condition and the building’s maintenance was a strong draw for the buyer,” says Eli Rosen, vice president of Gebroe-Hammer Associates.Ardleigh Upsal LP procured the property from Ardleigh Gardens…

Anuradha Kher, Online News EditorChicago–The Prime Group Inc., a Chicago-based owner, operator and developer of commercial and residential real estate, has unveiled its plans for Ten East Delaware, a 35-story, European-inspired condominium building located on the corner of Delaware and State in Chicago.Ten East Delaware, designed by architect Lucien Lagrange, includes one-, two-, and three-bedroom floor plans ranging from 845 to 3,095 sq. ft. The 121 units have 9- to 10-ft. ceilings and large balconies. Prices range from $550,000 to $2.6 million, and climate-controlled, indoor parking is available starting at $65,000.“Lucien has instilled this building with a graceful, old-world style…

By Anuradha Kher, Online EditorMyrtle Beach, S.C.–Construction on the North Beach Towers, located on a 7 ½-acre island between the Atlantic Ocean and White Point Swash in North Beach Plantation, has been topped out.North Beach Plantation is a 60-acre resort community located at the southernmost end of North Myrtle Beach, S.C.The 18-story Indigo and Jasmine Towers, being built by Winchester Development, are joined by an arched entrance with two bridges. They feature a two-story restaurant, lounge and concierge area. The towers have a 2.75-acre water park, a swim-up pool bar, private cabanas and indoor water amenities along with the natural…

Washington, D.C.–Federal Reserve Chairman Ben Bernanke said Wednesday that preventing an economic decline is the Fed’s main concern and is overshadowing inflation fears, the Chicago Tribune reported Thursday.Testifying before the House Financial Services Committee in Washington, D.C., Bernanke implied another rate reduction may happen in March. Analysts have speculated the cut could be half a percentage point, according to the Tribune.The Fed chairman said that “the economic situation has become distinctly less favorable” since last summer and that “the housing market is expected to continue to weigh on economic activity in coming quarters.”He also suggested Congress may need to deal…