Sunday, March 15, 2009

CNBC, Clarion-Ledger, what's the difference?

Uh-oh, Jeff Ayres at the Clarion-Ledger is trying to write about the housing market again. If you want to see a really poorly-written article, read his story. Shouldn't come as a surprise as he recently wrote a story about the so-called decline in local housing values while admitting he actually did not use any sales data.

Mr. Ayres also fails to ask one basic question in his story: how much sense can it make for the government to fund all of these housing initiatives when the foreclosure rate for FHA no-money down programs is TRIPLE the rate for FHA mortgages where the borrower is required to make a down payment?

These programs are not a good idea as what caused this entire housing crisis was giving loans to people who had no business getting a mortgage. The numbers don't lie: a down payment, decent credit, stable job with decent income, and the judgement to not bite off more than one can chew in terms of a housing payment mean a much lower default rate. Unfortunately for the readers, Mr. Ayres did not ask if throwing more money at riskier borrowers would only make the problem worse.

I'm starting to think this guy is qualified for CNBC.

Earlier Post on Ayres' sloppy reporting

1 comment:

Kingfish said...

Housing hopes riding on stimulus plan
Jeff Ayres • jeff.ayres@jackson.gannett.com • March 12, 2009

Mississippi's housing advocates are hoping a host of new initiatives, including some in the recently approved economic stimulus package, will encourage more homebuying and help stem foreclosures.



As of about a week ago, some 3,850 homes were available in the Jackson Multiple Listing Service's eight-county coverage area. It's not clear how many of those homes have been foreclosed on.

Prices for available homes in Hinds, Madison and Rankin counties range from $15,000 to $2.5 million, according to the RealtyTrac online real estate information site.

RealtyTrac also tracks foreclosures, and it has reported home foreclosures in Mississippi jumped 62 percent from 2007 to 2008. The state also often ranks among the worst in the nation for delinquent mortgages.

But help could be on the way to stimulate homebuying and better ensure successful homeownership.

The almost $800 billion stimulus package includes a provision upping a previously approved tax credit for qualified first-time homebuyers from $7,500 to $8,000 and removing a repayment requirement.

Housing officials hope the changes are proactive enough to get more people to buy homes in one of the most challenging housing markets in history.

"That's going to be a major component of the economic stimulus plan, getting people to buy homes," said Scott Spivey, a spokesman for the Mississippi Home Corp., which aims to increase homeownership for low- and moderate-income residents. "(The tax credit) is certainly another arsenal to get people back out buying homes."

Those who qualify for mortgage revenue bonds in which a prospective homeowner puts up a 3 percent cash advance on a 30-year, fixed-rate loan also can take advantage of the $8,000 credits, Spivey said.

Previously, a homeowner was limited to one of the programs.

The National Association of Realtors backed removing the repayment requirement and pushed for a credit of up to $15,000.

But even with a lesser maximum amount on the credits, people who are able to buy homes should have better prospects of purchasing than they would when the repayment provision was in effect, said John Jenkins, president of the Jackson Association of Realtors.

"It takes years, if you're a first-time homebuyer, to pay that back," he said. "A first-time homebuyer is likely a (young) family (or) a young couple new to the job market."

The IRS recently announced those who qualify for the credit have the option to claim it on their 2008 or 2009 tax returns.

It does not apply to people who bought homes between April 8 and Dec. 31 last year. People who bought their first homes during that time can receive only up to $7,500, according to the IRS.

Beyond the stimulus package, the U.S. Department of Housing and Urban Development has awarded the Mississippi Development Authority about $43 million to implement a neighborhood stabilization program intended to help areas with the highest numbers of foreclosed homes.

Some $20 million of that money will go to organizations that will buy, refurbish and lease foreclosed and abandoned homes to eligible homebuyers, who will have the option to buy those homes after four or five years.

Through the Mississippi Home Corp., $8 million will go toward grants for qualified homebuyers to use toward down payments on foreclosed homes.

Each program targets those with incomes of 120 percent or below of the area's median income.

The city of Jackson will get $11 million in HUD money to develop housing for people whose individual or household incomes are at 50 percent or below the area's median income.

"It escalated our annual allocation toward taking homes that have been foreclosed on and putting them back in the hands of qualified individuals (and families)," said Steve Hardin, the MDA's director of community services.

"Hopefully, they'll build equity in their homes and build credit, and, hopefully, they'll be ready to purchase the home," he said.

If a homeowner declines to buy after four or five years, they can renew the leases, Hardin added.

The $43 million could be used for all Mississippi counties except for six along the Gulf Coast. Those counties have a separate long-term housing program under HUD.

The West Jackson Community Development Corp. hopes to work with the city to further its housing work.

"We're trying to get our arms around it," the group's housing director, Lenadrew Mayberry, said of the stimulus package's details. "Certainly, there are opportunities for people who are seeking to acquire a home."

The federal government in the last several years has introduced several sweeping measures to stop foreclosures, make it easier to buy a first home or refinance existing mortgages.

But those programs likely will have limited success as long as the economy remains weak and volatile, said Bill Gunther, director of the University of Southern Mississippi's Bureau of Business and Economic Research.

"It might stimulate some sales, but many people remain frozen in fear that home prices are going to continue to drop," he said.

The housing market won't improve significantly, Gunther continued, until inventories are thinned through job creation, easier credit access and the increased spending confidence those will create.

Jenkins said the supply of homes locally includes a number that are readily affordable for those with the money for a down payment and the ability to pay the mortgage.

Some of the city's major employment sectors, such as government and medicine, can draw people who, even out of school, might be able to afford a home, Jenkins said. "We have a lot of first-time homebuyers in this market."



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Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


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Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

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