“I think the biggest change they’re going to see is, the here-and-there small businesses that didn’t use to take Discover are going to start taking Discover”

Discover Financial Services, the underdog of the four major credit card networks, gets the chance to prove itself a force to be reckoned with Monday, when it begins trading publicly on the New York Stock … via CanadaEast Online

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“We found that pure spinoffs tended to provide the highest returns to shareholders as both the parent company and the spinoff saw post-spin performance that exceeded the overall market”

The spinoff, that old ploy for companies keen to unlock value, is back in vogue. via Earth Times

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If you knew something that could make a world of difference in the lives of your friends and family members would you keep that information to yourself or would you…

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Imitation is the best form of flattery, right? Well, when you’re learning a new skill, imitation can also be a great way to hone your craft. via The Motley Fool

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Current Trends in Texas Mortgage Market - Impact of subprime market downturnCurrent mortgage rates and optionsMortgage rates in Texas have gone up slightly as is the scenario in markets throughout the nation. Fixed rate loans including 30 year and 15 year mortgages have climbed up slightly above 6%. Interest rates on 1 year ARM have gone up to 6.00% whereas 5/1 year hybrid ARM rate have exceeded the 6% mark. 15 year fixed rate loans still remains a popular Average mortgage rates this week 15 Year FRM 6.50% 30 Year FRM 6.79% 1 Year ARM 6.13%option for refinancing in Texas. Besides, creative loan products like interest-only loans and option ARMs are being offered to those looking for higher priced homes.Texas reverse mortgageThe mortgage market in Texas has been able to develop a large base for reverse mortgage borrowers especially those looking for the HUD insured HECMs. The entire volume of reverse mortgages originated in Texas accounts for 5.7% of the total volume of such loans offered throughout United States. For the past few years, the largest number of reverse mortgage originations has taken place at Dallas in Texas. However, the amount of HECM insured by the HUD is restricted to each county in the state. This is known as the 203b limit. Subprime marketWith the shakeout in the subprime mortgage business nationwide, tougher lending standards are expected to follow and this is likely to affect Texas home buyers at a time when home sales are already on a slowdown. Increasing defaults and delinquencies in the subprime market have resulted in foreclosures in large numbers. Almost half of the current home foreclosures in Texas are due to the origination of subprime loans. Most of the subprime loans in default are adjustable rate mortgages on which borrowers failed to continue the payments due to variation in interest rates. It is expected that owners of entry-level homes may not go for higher priced homes due to lesser number of buyers being available in the market. Besides, borrowers being reluctant to go for higher prices, lenders are also not ready to approve loans until and unless enough documentation is being submitted. Housing market scenarioIn order to prevent loans from going into defaults, big mortgage companies are offering home loans on the basis of more upfront cash, higher income level, and better credit scores. On one hand, these changes can minimize the number of defaults and foreclosures while on the other hand, it will result in fewer home sales in Texas, especially in the northern region. Besides, there being a lack of 100% financing, home sales are likely to get affected further. As of now, sales on low and moderate income home buyers in some areas of Texas (like Dallas) have declined by more than 20% in the past few years. Due to the disturbance in the subprime market and the decline in home sales, builders who initiated new loan products have abandoned them. They are also concerned over the consequences of tightening lending standards on home sale activities. Home builders have slashed the new home starts by nearly 28% during the first quarter of the year compared to the same period last year. However, in spite of fewer home starts, closings of newly constructed homes are still on the rise. Mortgage rates aheadCurrently the economy in the state looks strong and consumer spending is expected to improve by the steady growth of employment and increase in household wealth. As such there is a possibility that the Fed may again raise interest rates in order to curb inflation.

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Florida Mortgage - Are the current market trends favorable for you?Mortgage rate overview..The Florida market currently reflects the nationwide drop down in mortgage rates - that of the common fixed rate loan options like 15 year fixed, 30 year fixed and the 1 year ARMs. However, the 5/1 year hybrid ARMs are slightly up by a few basis points and are currently on an upward trend. Average mortgage rates this week 15 Year FRM 6.55% 30 Year FRM 6.83% 1 Year ARM 6.69% The statewide 15 year mortgage rates that have been above 6% have dropped down to even below 6%. The 30 year rates have somehow managed to stay above 6% but declined slightly from the previous value. This is due to the stock market pushing long term rates lower as the 10 year Treasury note yields dropped. The 30 year fixed rate mortgage continues to be Florida’s most common home loan. Besides, Hybrid ARMs and interest-only options are quite popular these days. {include file=”components/searchlenders-instatepage.tpl” StateID=12} Subprime market and how it can affect youThere are concerns about the subprime mortgage market, which has been in trouble nationwide since quite some time. This has affected the secondary market where big companies like the Freddie Mac have refused to buy subprime loans till the end of September. The company has also declared that borrowers going for non-subprime loans will need to qualify at the fully-indexed rate and not the low introductory rate in order to take out adjustable rate mortgages.However, qualifying a borrower with a certain income against a higher rate does not imply that he will not get the loan. But then there are chances that the borrower qualifying for a certain loan amount at the ARM introductory rate may be offered a lower amount in comparison if he has to qualify at the fully indexed rate (higher than introductory rate). This is likely to lessen the demand for homes and that’s not so good news for the housing market which needs more stabilization.However, the expected decline in new home sales can be balanced by slow down in long term rates which are expected to be at low levels as that will help in refinancing. So, A credit borrowers having signed the deal for an ARM can avoid payment shock after a certain number of payments.Despite the delinquencies and defaults in the subprime mortgage industry, it is expected that over 80% of the market would be involved with A credit and the rest 20% would account for the subprime loans. A considerable percentage of borrowers out of the 20% is in some stage of delinquency and cannot get through on account of low equity built up and rising monthly payments. The primary reason behind this is stumbling home prices, which have made it difficult to refinance loans or sell properties to pay down debts.Trends in Florida housing marketThe housing market in Florida reflects the national trends - slower home sales compared to what it has been last year around this time. However, prices of single family homes have remained steady even with inflation suggesting that there is some kind of stability in the housing market. Since single family housing is the area where most lending transactions happen, therefore the market looks good for investment into single family properties. However, not all markets are progressive. Jacksonville has a slow and steady market compared to Orlando, Tampa, St. Petersburg, Miami and other cities in South Florida.Economy and Florida mortgage rates forecastThe Federal Reserve has kept the Fed Funds Rate almost steady in order to check inflation. However, Consumer price Index has gone up thereby showing signs of higher inflation and hence the Fed is expected not to cut down rates but rather hold them steady. The economy is going through slower growth and this will keep mortgage rates at lower levels. This will find its reflection in the state of Florida too.

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According to a report on Bloomberg.com, hedge funds attracted about $60 billion in assets in the first quarter. via Motley Fool

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Posted on Jun 27th, 2007 with stocks: DFSWI Rick Biggs submits: Discover Financial Services , the credit-card spinout from Morgan Stanley set to be completed at the end of the month, began trading on a … via Seeking Alpha

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