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Fast Talkers, Title Insurance and a Mortgage Update from Richard Silva


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Blog by Doug Ingersoll | February 22nd, 2016


From Elliott Eisenberg, the Bowtie Economist: The Friday File: By analyzing 2 million phone calls, we now know Oregonians speak fastest, followed by residents from Minnesota, Massachusetts, Kansas, and Iowa. The slowest talkers are Mississippians, followed by residents from Louisiana, SC, AL, and NC. Those who gab the most, New Yorkers, followed by citizens of CA, NJ, NV and MD. The most taciturn, Iowans, followed by denizens of MN, WI KS and OK.
 
How can an Owner’s Title Insurance Policy protect consumers from unexpected threats with homeownership?
 
·         THE SELLER MAY NOT HAVE OWNED THE HOME OR HAVE THE RIGHT TO SELL IT: Title insurance coverage offers coverage against defects in title caused by fraud, forgery, incapacity, impersonation or the seller’s lack of authority to sell the property.
 
·         THE POLICY MAY COVER MORE THAN JUST OWNERSHIP: Depending on the type of policy issued, coverage insuring against loss due to disputes over boundaries, access rights and easements may be provided to your clients.  Always ask about available options for extended or expanded coverage.
 
·         A LENDLER’S TITLE POLICY DOES NOT COVER THE BUYER: The lender has required that the buyer pay for a lender’s title insurance policy, but that policy only provides insurance to the lender.  A homeowner is not covered, and cannot make a claim, under a lender’s policy of title insurance.
 
·         THE HIGH COST OF CLAIMS: Title disputes are not cheap.  Are your clients prepared to pay a lawyer to fight for them in court?  Title insurance includes coverage for legal expenses which may be necessary to investigate, litigate or settle an adverse claim.
 
 ·         COVERAGE FOR A ONE-TIME PREMIUM: The premium for an owner’s policy of title insurance is only paid once and covers the buyer for as long as they hold an interest in the title to their home.  The coverage automatically continues for the benefit of their heirs as well.
 
From Heidi Dombrowski 
Branch Manager at First American Title right here in Desert Ridge
20860 N. Tatum Blvd., Ste. 100 
Phoenix, Arizona 85050 

And from Richard Silva, Loan Officer at Loanstar Home Lending and Aviano resident:
"This could be the start of something new." Vanessa Hudgens and Zac Efron. Across the country, builders are still breaking ground on new homes, though the number has declined thanks, in part, to Mother Nature. The good news is that more than one million homes are waiting to be built.
 
January Housing Starts hit a three-month low. Starts, which measure the beginning of excavation on a home's foundation, fell 3.8 percent from December to an annual rate of 1.099 million units. This was lower than the 1.171 million expected. All four major regions across the country saw declines, but a big East Coast snowstorm caused a halt in some late-month construction in the area. In line with expectations, January Building Permits, a sign of future construction, hit 1.202 million units.
 
In other news, key regional manufacturing data from New York and Philadelphia continues to paint a bleak picture with yet another month of contraction. The sector is still being weighed down by a stronger dollar and weak overseas demand, which are plaguing expectations of future business conditions for the first half of this year.
 
Finally, the January Core Consumer Price Index (CPI), which is an inflation measure that strips out volatile food and energy, rose 0.3 percent. This was the largest gain since August 2011. Year-over-year, Core CPI rose by 2.2 percent, the largest increase since June 2012. Blame rising rents and higher medical costs.
 
Why is this important? Inflation has been a non-issue for many years. If January's increase becomes a trend rather than a one-time pop in inflation, home loan rates could move higher. Rates are tied to Mortgage Bonds, and inflation reduces the value of fixed investments like Bonds.
 
For now, home loan rates remain near historic lows.

Forecast for the Week    
  
Housing news, consumer attitudes and personal spending are plentiful.
Housing data kicks off on Tuesday with the S&P/Case-Shiller Home Price Index and Existing Home Sales, followed by New Home Sales on Wednesday.
Consumer Confidence will be released on Tuesday, while the Consumer Sentiment Index is coming on Friday.
Durable Goods Orders join weekly Initial Jobless Claims on Thursday.
Friday brings the second read on fourth quarter 2015 Gross Domestic Product, along with Personal Income, Personal Spending and the Fed's favorite inflation gauge, Personal Consumption Expenditures.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve. In contrast, strong economic news normally has the opposite result. 
Richard can be reached at 602.373.3654