California Mortgages – Tinigard http://tinigard.info/ Fri, 11 Jun 2021 19:43:18 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 https://tinigard.info/wp-content/uploads/2021/05/default1-150x150.png California Mortgages – Tinigard http://tinigard.info/ 32 32 Why Do Mortgage Rates Go Down With Inflation? – Orange County Register https://tinigard.info/why-do-mortgage-rates-go-down-with-inflation-orange-county-register/ https://tinigard.info/why-do-mortgage-rates-go-down-with-inflation-orange-county-register/#respond Fri, 11 Jun 2021 14:50:33 +0000 https://tinigard.info/why-do-mortgage-rates-go-down-with-inflation-orange-county-register/ The economy is picking up. Americans return to travel, eat out, go to the movies and play ball. But if you’ve been expecting a strong recovery to lead to a steep rise in mortgage rates, think again. On Thursday, 10-year Treasury rates (a carefully watched indicator and a major benchmark for mortgage rates) fell below […]]]>


The economy is picking up. Americans return to travel, eat out, go to the movies and play ball.

But if you’ve been expecting a strong recovery to lead to a steep rise in mortgage rates, think again.

On Thursday, 10-year Treasury rates (a carefully watched indicator and a major benchmark for mortgage rates) fell below 1.46%. Prior to the recent pullback, government bond yields reached 1.69% in May.

The drop in Treasury yields came after new reports showed the US trade deficit had reached record highs. For mortgage borrowers, lower Treasury yields can lead to lower mortgage rates. Typically, the 10-year Treasury is 150-200 basis points above the 30-year mortgage rate.

Greg McBride, chief financial analyst at Bankrate, said: “One day, drops in Treasury yields mean lenders often change prices that day and borrowers get better rates within hours. Treasury yields are falling. Now is a good time for borrowers to set interest rates early in the week. “

Mortgage buyer Freddie Mac said Thursday the 30-year average interest rate fell from 2.99% last week to 2.96%.

Interest rates on 15-year loans, which are popular for refinancing mortgages, fell from 2.27% last week to 2.23%.

According to the Ministry of Labor, consumer prices rose the fastest since 2008 in May, according to the latest economic news. The consumer price index in May rose 5% year on year.

Another inflation index, which excludes volatile food and energy costs, rose 3.8% year-on-year, the fastest pace since 1992.

In addition, the government announced last week that the number of Americans claiming unemployment benefits fell to 376,000 for the sixth week in a row. This is the lowest value for a new pandemic.

Sam Carter, chief economist for Freddie Mac, said: “But house prices have not yet weakened as prices remain high due to the shortage of inventory.”

The reversal of Treasury yields is just the latest ball of the curve launched by the economy. Mortgage experts expect mortgage rates to continue rising this year, said Joel Narov, director of Narov Economics.

“There is little reason for government bonds to drop,” Narov said. “Inflation has not gone away, growth is strong and the economy has just started to fully recover. Treasury interest rates are expected to recover, so lower mortgage rates may be temporary. “

What you can do to ensure a smooth and profitable refinancing

Mortgage rates have risen from their all-time lows set in January, but there is still time to refinance mortgages. Here are three professional tips:

• Shop: the best offer goes to the borrower to compare mortgage offers. You can save thousands of dollars over the life of your loan by getting at least three quotes.

• Consider rate freezes: Lenders typically extend rate freezes for 30 to 60 days. This means that if the rate goes up before the loan ends, you no longer have to pay. However, these are not normal times and many refinances don’t end within 30-60 days, so make sure your lender is prepared to extend the rate freeze if the transaction is delayed.

• Keep your credit score tight: Now is not the time to miss a payment, take on new debt, or do anything else to lower your credit score. Lenders are particularly strict on the credit history of the borrower.

Bankrate, The New York Times, The Associated Press contributed to this report.

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Independent borrowers still struggle to qualify for government guaranteed loans – Press Telegram https://tinigard.info/independent-borrowers-still-struggle-to-qualify-for-government-guaranteed-loans-press-telegram/ https://tinigard.info/independent-borrowers-still-struggle-to-qualify-for-government-guaranteed-loans-press-telegram/#respond Thu, 10 Jun 2021 19:04:49 +0000 https://tinigard.info/independent-borrowers-still-struggle-to-qualify-for-government-guaranteed-loans-press-telegram/ Fannie Mae last week launched a new program called RefiNow to help heavily indebted and low-income borrowers qualify for mortgages. The standard for qualified borrowers is that their debt should not exceed 50% of their income. Under Refi Now, the eligible debt-to-income ratio reaches an astronomical rate of 65%. OKAY. fair enough. But what about […]]]>


Fannie Mae last week launched a new program called RefiNow to help heavily indebted and low-income borrowers qualify for mortgages.

The standard for qualified borrowers is that their debt should not exceed 50% of their income. Under Refi Now, the eligible debt-to-income ratio reaches an astronomical rate of 65%.

OKAY. fair enough. But what about profitability for self-employed borrowers riddled with debt?

Their answer appears to be Refi Never.

Fannie Mae (and Freddie Mac) draconian self-employed underwriting restrictions COVID-19, which went into effect just over a year ago, are still ongoing.

COVID has put stress on all businesses then and today.

In addition to filing a business income tax return for at least a year, the borrower was required to file interim financial statements.

The year-to-date income statement was to keep pace with last year’s income. The underwriters speculated that the decline in income since the start of the year would indicate that the borrower’s business is hovering around the drain. Decline credits now. abort.

The new rules have killed the prospect of getting a cheap mortgage for too many people.

For example, my store refused because about half of independent borrowers were unable to qualify for a loan. Yes, it is half.

The income statement since the start of the year has become an obsession with underwriting. Some lenders did not tolerate a drop in income. Others have said that no die has a die greater than 10%. And at least one lender I know of allows up to 25% drop as long as the borrower is still eligible for drop in income.

It was worth buying and refinancing borrowers who wanted lower interest rates on Fannie Mae and Freddie May also had to explain the details of the bank statement of the company that linked P&L to the initiator of the ‘mortgage. What’s a better confession agent for Fannie Mae and Freddie May than those adjacent to a forensic audit?

Independent candidates were angry at the scrutiny. It was like a body search. But they wanted the lowest mortgage rates in modern history, so they took it.

Others just said no. Some have expressed their anger in words that are unacceptable to offer to you.

How else can a lender decipher a financially strong candidate from a weak candidate? It is safer in the eyes of F&F than regret.

Yes, many businesses have collapsed, burned down and closed. However, many people have survived and thrived on luck and government support like the PPP program.

Bankruptcy attorneys Richard Golubow of Winthrop, Golubow and Hollander pointed out that reduced travel during the COVID period, reduced office overhead and no entertainment costs could increase profits even with more gross income. low.

“People worked harder,” Gorbow said.

Corporate bankruptcy filings are on the decline. According to bankruptcy reporting service Epiq AACER, in 2020, Chapter 11 and 13 bankruptcy filings declined about 19% year-on-year in the United States. Each year, 2021 applications are reduced by more than 30%.

According to figures from Epiq AACER, the number of corporate BKs in California has declined by around 40% in 2020 and an additional 10% this year.

As of this week, mortgage grace has fallen to 4.16%, according to the Mortgage Bankers Association. The tolerance was 8.55% a year ago.

According to mortgage data firm Black Knight, more than 14 million borrowers can save an average of $ 283 per month by refinancing. There are roughly 1.9 million applicants in California who can save an average of $ 386 per month. There are 952,000 borrowers ready to refinance in Los Angeles, Orange, Riverside and San Bernardino counties.

How many independent borrowers can Fannie Mae and Freddie May support?

It was not possible to ask officials of the Federal Home Finance Office of mortgage regulators to comment on whether Fan and Fred would revert to the pre-COVID self-employed underwriting rules.

Freddie Mac Rate News: The 30-year fixed rate averaged 2.96%, 3 basis points lower than last week. The 15-year fixed rate averaged 2.23%, down 4 basis points from last week.

The Mortgage Bankers Association said mortgage application volumes fell 3.1% from the previous week.

Conclusion: Assuming the borrower gets a 30-year average fixed rate on an adjusted loan of $ 548,250, last year’s payments were $ 74 more than this week’s $ 2,300 payments.

What I see: Locally, qualified borrowers can get the next fixed rate mortgage at a cost of 1 point: 30 year FHA 2.25%, 15 year conventional 1.99%, 30 year conventional 2.625%, The traditional top 15 year balance ($ 548,251 – $ 822,375) is set at 2.125%, the traditional 30-year high balance is set at 2.75%, and the 30-year jumbo is set at 2.75%.

This week’s eye-catcher loan: 30 years fixed at 3% free of charge.

Jeff Lazerson is a mortgage broker. He can be contacted at 949-334-2424 or jlazerson@mortgagegrader.com. His website www.mortgagegrader.com.

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How LoanDepot’s Anthony Hsieh went from cashier to mortgage billionaire – Orange County Register https://tinigard.info/how-loandepots-anthony-hsieh-went-from-cashier-to-mortgage-billionaire-orange-county-register/ https://tinigard.info/how-loandepots-anthony-hsieh-went-from-cashier-to-mortgage-billionaire-orange-county-register/#respond Thu, 10 Jun 2021 00:22:41 +0000 https://tinigard.info/how-loandepots-anthony-hsieh-went-from-cashier-to-mortgage-billionaire-orange-county-register/ Lisa Lee and David Sigrizzo | Bloomberg When Lake Forest-based LoanDepot debuted on the New York Stock Exchange earlier this year, Anthony Shah Unusual among the ultra-rich, he became an Asian-American millionaire. For the 56-year-old, it was the culmination of decades of quest to challenge the highly competitive mortgage industry. He also took advantage of […]]]>


Lisa Lee and David Sigrizzo | Bloomberg

When Lake Forest-based LoanDepot debuted on the New York Stock Exchange earlier this year, Anthony Shah Unusual among the ultra-rich, he became an Asian-American millionaire.

For the 56-year-old, it was the culmination of decades of quest to challenge the highly competitive mortgage industry. He also took advantage of some of his own struggles as an immigrant from Taiwan to the United States to become more prominent and give it new impetus to inspire others.

“I have a unique opportunity,” she said. “Thanks to my success, I was able to cross the border efficiently and gain the respect of non-Asians. This gives Asians a lot of pride.


Relationship: LoanDepot CEO buys Newport Coast mansion for record $ 61 million


His meeting place at the top demanded that a masked man rush into his parents’ liquor store in Long Beach on Sunday afternoon 42 years ago, slamming a gun to his head and emptying the cash register. It is very different from the time.

A few minutes of desperate fear of life taught Shay one of the most important lessons of his career. He is believed to have helped Asian Americans later cope with the discrimination and hostility they encountered upon entering the financial industry.

“We will learn self defense and survival very early on,” said Shay, who will face two other armed robbers while working at a family cashier. “I won’t trade it for anything.”

Her parents moved to California after leaving Taiwan with Hsieh and her two sisters in the early 1970s. Abandoning a comfortable life to raise a child in the United States, her father worked as a grill cook, but before saving enough. to open his own store, he was a grill cook. shop.

Because they didn’t speak English, she helped all of the family’s major financial decisions, from buying cars and appliances to paying off mortgages.

“I have been protecting my parents since I was eight,” he said. “I became their advisor, loan officer and translator.

He says it was through his education that he instilled in him the resilience and determination to take on some of the big banks on Wall Street, one of the toughest places in finance, head on. He says.

Serial chord maker

According to the Bloomberg Billion Index, Shay’s fortune is currently around $ 2 billion. He is one of the few East Asian Americans who, along with Eric Yuan of Zoom Video Communications Inc. and Jensen Huang of Nvidia Corp., transformed the American companies they founded into multi-billion dollar companies. dollars. ..

Unlike many millionaires who made their fortune in Silicon Valley after graduating from US Elite University, Hsieh attended California State University, Fullerton, completely removed from the upper classes of the tech industry.


From the archives: Online lending pioneers bring new ideas to the yacht industry


In fact, his jump into finance was almost a coincidence.

His parents wanted him to be a doctor, but they were happy to go to the dentist because he knew his son was afraid of blood. Instead, Hsieh applied for a job as a lender for a small mortgage company, following the advice of one of his baseball teammates. It was adopted on the spot.

After working for the company for only four years, Hsieh realized that this company had more potential than the owner could imagine. He therefore offered to buy the whole company. After leading once, he gave up typewriters and fax machines, aggressively grew his online business, and changed his name to LoansDirect.com.

“I just thought I could do better,” Shay said. “I didn’t know what my skills were. I just felt confident and competitive. I had a great work ethic.

It was the start of a series of businesses that have made Hsieh one of the most successful entrepreneurs in the highly competitive mortgage industry. After selling LoansDirect.com to E * Trade Financial Corp. in 2001 he founded HomeLoanCenter.com. It is the first online platform to offer a full range of mortgage products in all 50 states. When he sold it to LendingTree in 2004, the company had 800 employees.

Mortgage boom

But Hsieh got most of his fortune from LoanDepot. The company hit an all-time high in 2020 as the Federal Reserve Board (FRB) cut interest rates to near zero in response to the spread of the novel coronavirus and made mortgages one of the biggest winners of the pandemic. Registered year.

LoanDepot’s First Digital Approach With more than $ 100 billion in origin, it was the seventh largest mortgage originator in the country in 2020 and the second largest mortgage originator for direct delivery to consumers. .

In February, the company finalized its long-awaited initial public offering. Listing income was only about $ 62 million, a small part of the original target, but about a month later, thanks to debt dividends, more to shareholders, including Mr. Hsieh and his colleagues. co-investors. $ 200 million has been distributed.

The question is whether we can sustain such rapid growth.

LoanDepot’s share price has fallen by more than half since peaking shortly after listing. Meanwhile, the outlook for mortgages has weakened, with just 35% of consumers believing now is the right time to buy a home, according to Fannie Mae, and inflation given the price and rate potential. higher interest. An increased risk can further weaken the feeling. Much like selling and refinancing existing homes, home starts are slowing down.

Hsieh is currently interested in millennials, many of whom are buying homes for the first time. Most people are used to doing business online, but their familiarity does not always lead to a better understanding of interest rates and closing costs.

“They are very familiar with the use of digital tools, but that doesn’t mean they have financial knowledge,” he said.

How LoanDepot’s Anthony Hsieh From Teller To Mortgage Billionaire – Orange County Register Source Link How LoanDepot’s Anthony Hsieh From Teller To Mortgage Billionaire – Orange County Register



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Mortgage satisfaction | The bank rate https://tinigard.info/mortgage-satisfaction-the-bank-rate/ https://tinigard.info/mortgage-satisfaction-the-bank-rate/#respond Wed, 09 Jun 2021 04:10:16 +0000 https://tinigard.info/mortgage-satisfaction-the-bank-rate/ You have money matters. Bankrate has answers. Our experts have been helping you stay on top of your money for over four decades. We continually strive to provide consumers with the expert advice and tools they need to be successful throughout their financial journey. Bankrate follows a strict editorial policy, so you can be sure […]]]>


What is mortgage satisfaction?

A mortgage satisfaction is a document that serves as proof that you have fully paid off your mortgage, releasing the lien associated with the loan of your property and transferring title to you. This document generally includes:

  • Borrower and Lender Contact Information
  • Loan and Ownership Information
  • Notarization

Who prepares the mortgage satisfaction?

When you pay off your mortgage, it is your lender’s responsibility to prepare mortgage satisfaction, have the document signed by the parties involved, and have it notarized. The lender is also responsible for filing the documentation with the appropriate records office.

“The [lender/servicer] manages it completely, ”says Scott Sheldon, branch manager at New American Funding in Santa Rosa, California. “I just paid mine and received a ‘paid’ copy of my bill. “

If your loan was sold to a mender after it was issued – and many mortgages are – your mender, not the lender who funded your loan, is responsible for preparing the paperwork.

Depending on your lender, you may have to pay a nominal fee for the mortgage satisfaction processing.

How Long Does It Take To Get A Mortgage Satisfaction?

Generally, it takes 30 days to receive a mortgage satisfaction, but this may depend on the laws in your state. In Florida, for example, lenders have 60 days from the time the borrower pays off the mortgage to prepare and save the documentation.

For Sheldon’s own mortgage, the process took about three weeks.

Satisfaction of the mortgage with respect to the deed of retrocession

A mortgage satisfaction and a deed of retrocession indicate that the loan has been fully paid and the lien on the property has been released. A deed of on-lending, however, is generally used in states where a deed of trust is also used.

What if the satisfaction of the mortgage is not recorded?

If mortgage satisfaction is not recorded, the state could fine the lender. For this reason, lenders go to great lengths to ensure that they complete the process on time.

If for some reason you have not received mortgage satisfaction, contact your lender or service agent. If your lender has gone out of business, you can try to get a lien release through the Federal Deposit Insurance Corporation. Be prepared to hand over:

  • A copy of your note or trust deed
  • Title search results
  • Proof that you have paid your loan in full

Learn more:



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AAG moves headquarters to Irvine https://tinigard.info/aag-moves-headquarters-to-irvine/ https://tinigard.info/aag-moves-headquarters-to-irvine/#respond Tue, 08 Jun 2021 14:07:00 +0000 https://tinigard.info/aag-moves-headquarters-to-irvine/ “After moving most of our workforce remotely in 2020, we found that many of our employees preferred the flexibility of working from home or the office, depending on the needs of their job,” said the CEO of AAG. Reza Jahangiri. “We started to reinvent our workforce, after the pandemic, based on a hybrid model. After […]]]>


“After moving most of our workforce remotely in 2020, we found that many of our employees preferred the flexibility of working from home or the office, depending on the needs of their job,” said the CEO of AAG. Reza Jahangiri. “We started to reinvent our workforce, after the pandemic, based on a hybrid model. After evaluating our options, moving our head office to Irvine Towers, in the heart of Irvine’s “financial district”, gives AAG better access to of Orange County talent pool, while maximizing the work-life benefits of our employees. “

During the fourth quarter of 2020, AAG transferred all of its Orange Irvine Towers operations, increasing its footprint from 64,405 square feet to 87,898 square feet over four floors, including a new reception area on the third floor and a new talent acquisition room on the first floor in Building 18200, and additional offices in the neighboring building from 18100. AAG will now occupy the 3rd, 9e, tene and penthouse (11e) floors in 18200, as well as Suite 120 in building 18100. As AAG executes its return-to-office strategy in 2021, staff in Legal, Human Resources, Finance, IT, Facilities, Talent Acquisition, Learning & Development, Risk & Compliance and The AAG Foundation will join members of the Marketing, Sales & Operations team at Irvine Towers. AAG envisions a mix of onsite, remote and hybrid employees, with more emphasis on collaboration areas and shared workspaces.

“AAG’s decision to move its corporate headquarters to Irvine Towers is an incredible validation of the value that our vibrant work communities provide to our clients,” said Tom greubel, Vice President, Leasing, Irvine Company Office Properties. “In addition to fostering collaboration and inspiring growth, our work communities also help our clients recruit and retain top talent, all in a healthy and verified workplace. ”

With the move to Irvine, AAG joins a growing list of companies based in Orange County forming a financial services cluster in Irvine and surrounding areas. Owned by the Irvine Company, and located one mile from John Wayne Airport, Irvine towers is Leadership in Energy and Environmental Design (LEED) Gold certified and won the International Outstanding Building of the Year award from the Building Owners and Managers Association (BOMA) 2020 in the category of over one million square feet for the region of southwest Pacific. It includes The Commons, a fully furnished, event-ready outdoor workspace with video conferencing and plenty of on-site amenities including a private fitness center and several restaurants. AAG has partnered with H. Hendy Associates to create an open and inspiring office space within Irvine towers which promotes a team work flow.

AAG has been named a Top Workplace by the Orange County Register for eight consecutive years and was most recently named Top Company for Women, A Top Company for Diversity, Top Company for Human Resources, A Top Company for Sales and Top 10 Company. in the Los Angeles area by Comparable.

About AAG
AAG is dedicated to helping older Americans find new ways to fund better retirement through responsible use of home equity. As the national leader in reverse mortgages, AAG offers a range of home equity solutions, including home equity conversion mortgages, traditional and proprietary mortgages, and real estate services, designed to provide seniors with better outcomes. financial retirees. AAG is proud to be a member of the National Reverse Mortgage Lenders Association (NRMLA). To learn more about AAG and reverse mortgages, please visit the company’s website at www.aag.com.

American Advisors Group, NMLS ID: 9392, 18200 Von Karman Ave., Suite 300, Irvine, California 92612

Contact:
Ryan whittington
[email protected]
(657) 236-5220

SOURCE American Advisors Group (AAG)

Related links

http://www.aag.com



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Most Risky Housing Markets – 24/7 Wall St. https://tinigard.info/most-risky-housing-markets-24-7-wall-st/ https://tinigard.info/most-risky-housing-markets-24-7-wall-st/#respond Mon, 07 Jun 2021 17:00:45 +0000 https://tinigard.info/most-risky-housing-markets-24-7-wall-st/ Real estate is one of the few sectors to have thrived during the COVID-19 pandemic. Sales of existing homes in 2020 hit their highest levell in almost a a decade and a half – and increased demand has driven up house prices. Median home sales hit a decades-long high of $ 278,000 in the first […]]]>


Real estate is one of the few sectors to have thrived during the COVID-19 pandemic. Sales of existing homes in 2020 hit their highest levell in almost a a decade and a half – and increased demand has driven up house prices. Median home sales hit a decades-long high of $ 278,000 in the first quarter of 2021, up 17.7% from the previous year, according to ATTOM Data Solutions.

Despite a strong housing market, there are still many counties where the housing market is at increased risk from the impact of the pandemic, either directly or indirectly.

These areas have above-average foreclosure rates and shares of homes with above-average underwater mortgages, meaning that the value of outstanding loans exceeds the total value of the property. Some of these markets are also much less affordable than average with high home ownership costs relative to local incomes.

Based on an index of these three metrics – foreclosure rate, share of underwater mortgages, and affordability – at the county level, 24/7 Wall St. identified the most risky housing markets. All data in this story was compiled in the first quarter 2021 Coronavirus Special Report from ATTOM Data Solutions, a real estate and real estate data company.

Many of the counties on this list are located in the eastern United States, stretching from Florida through the mid-Atlantic to New England. The pandemic has wreaked above-average economic and public health devastation in some of these counties. County in every state with the most COVID-19 deaths.

“The pandemic is still significant and may pose a threat to the progress made so far and, by extension, could affect sales of homes andd price, ”said Todd Teta, product manager at ATTOM in a press release. Indeed, the housing market is booming, but many American homeowners remain vulnerable.

Click here to see the most risky housing markets.

To determine the most sensitive housing markets, 24/7 Wall St. examined data from ATOM Data Solutions First Quarter 2021 Coronavirus Special Report on the susceptibility of county-level housing markets to risks associated with the coronavirus pandemic. The counties were ranked based on a composite index of the percentage of residential properties foreclosed in the first quarter of 2021, the percentage of average local wages needed to cover major expenses related to the owning a median priced home in the first quarter of 2021, and the percentage of properties with outstanding mortgage balances that exceeded their estimated market values ​​in the fourth quarter of 2020, i.e. underwater mortgages. All components of the index come from ATTOM data solutions and were weighted equally. Supplementary data on unemployment and the labor force are from the Bureau of Labor Statistics and are not seasonally adjusted.



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Trump’s Federal Tax Deferral Debacle Reminds That Good Tax Policy Is Important https://tinigard.info/trumps-federal-tax-deferral-debacle-reminds-that-good-tax-policy-is-important/ https://tinigard.info/trumps-federal-tax-deferral-debacle-reminds-that-good-tax-policy-is-important/#respond Sun, 06 Jun 2021 08:30:05 +0000 https://tinigard.info/trumps-federal-tax-deferral-debacle-reminds-that-good-tax-policy-is-important/ Some former Trump administration appointees who are no longer employed by the government were recently surprised by their former employer’s tax bills associated with last year’s payroll taxes. Former President Donald Trump seemed to genuinely believe he was going to put some extra money in people’s pockets. Instead, he highlighted the differences between good and […]]]>


Some former Trump administration appointees who are no longer employed by the government were recently surprised by their former employer’s tax bills associated with last year’s payroll taxes. Former President Donald Trump seemed to genuinely believe he was going to put some extra money in people’s pockets. Instead, he highlighted the differences between good and bad tax policies – differences that can have costly consequences.

The decree did not and could not abolish the tax, it only deferred it. In general, only Congress has the power to impose or remove taxes.

Last August, in the midst of the Covid-19 crisis, Trump issued an executive order – against the advice of tax experts on the right and left – directing the Secretary of the Treasury to allow all employers to defer the withholding of the wage share of Social Security taxes for employees earning less than $ 4,000 per bi-weekly pay period.

What did this mean? This meant that an employer could choose not to withhold the 6.2% wage share of taxes owed for approximately nine bi-weekly pay periods, from September 2020 to January. This is a potential total deferral of over $ 2,000 in payroll taxes.

The trap ? The decree did not and could not abolish the tax, it only deferred it. In general, only Congress has the power to impose or remove taxes.

After the executive order, the IRS issued guidelines allowing employers to withhold those dollars in the first four months of 2021. But Congress and Trump – in December 2020 – enacted a provision allowing employers to withhold those dollars on the payroll. ‘set of 2021. This means that federal employees will have to pay extra with each paycheck, but spread over the year.

For the most part, perhaps on the advice of their own in-house experts, large employers have mostly rejected Trump’s opportunity. This makes sense for several reasons, including the fact that the employer is responsible for ensuring that these taxes are withheld in 2021. If an employee retires after withholding tax, the employer may have difficulty recovering. those dollars. Additionally, it can be costly (not to mention administrative headaches) for large companies to change their accounting systems for a short period of time.

Unfortunately for government employees, the government, including the military, took over its idea of ​​Trump in 2020. And those appointed by Trump – many of whom no longer work for the federal government – do not have the option of repaying. money gradually. . For these former federal employees, they have to pay a lump sum.

An unexpected change in your paycheck – or a big bill from the IRS at tax time – is never a pleasant surprise. Trump’s executive order, while presumably well-intentioned, ultimately hurt many public servants’ expectations and their budgets. But it is also instructive. Tax policy isn’t sexy, but it remains vitally – so drily – important.

First, social security is popular because the idea of ​​a retirement safety net gives workers a sense of societal security. But it is also popular because of the way it is restrained.

It turns out that paying taxes in small amounts over a period of time provides a better experience for most taxpayers. We don’t feel like the cost is that high when it’s slowly taken out of our paychecks instead of being owed all at once.

Some tax experts have actually called on state governments to adopt these principles for property taxes. The argument is that if city authorities were to have property taxes withheld monthly, as banks do for people with mortgages, people would have an easier time making these payments and the government would be more assured of receiving the taxes owed. .

No one likes paying taxes, but the experience can be better or worse depending on how we think about it. The main lesson here is that poorly designed tax policy can harm the lives of citizens. The good news is that it is possible to do better.

With Tax Day just behind us, one possibility should have more weight: an immediate return. Return Ready was a pilot program in California in 2004 with a free pre-filled tax return based on a W-2 taxpayer and previous years’ returns. It saved taxpayers time and money and was less error prone than other preparation methods. Californians loved it mostly and California adopted it, in part, into their CalFile system, but it was never widely used.

It is good tax design that makes life easier for people. For most people, there is almost no reason to have to file a tax return every year. The government knows everything it needs to know to pay your taxes well.

The GOP and Trump intuitively supported this idea in 2017 when they proposed that they could file a tax return on a postcard. Although the tax return on a postcard didn’t fly, the idea behind it, to simplify paying taxes, is good and is within our grasp.

So while I’m sorry that many government workers were on a tight budget early in 2021, I hope we can learn what not to do in the future – and maybe even look for some ways to modernize our tax system in the future.



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US Economy: Lots of Growth, Not Enough Workers or Supplies – Riverside, CA https://tinigard.info/us-economy-lots-of-growth-not-enough-workers-or-supplies-riverside-ca/ https://tinigard.info/us-economy-lots-of-growth-not-enough-workers-or-supplies-riverside-ca/#respond Sat, 05 Jun 2021 15:24:01 +0000 https://tinigard.info/us-economy-lots-of-growth-not-enough-workers-or-supplies-riverside-ca/ More than a year after the coronavirus caused a record economic fall and job losses, the rate of recovery has been surprisingly rapid. The US economy is causing turmoil and whiplash at about the same rate as job increases. More than a year has passed since the coronavirus caused a record economic fall and job […]]]>


More than a year after the coronavirus caused a record economic fall and job losses, the rate of recovery has been surprisingly rapid.

The US economy is causing turmoil and whiplash at about the same rate as job increases.

More than a year has passed since the coronavirus caused a record economic fall and job losses, but the recovery has been surprisingly quick, so many companies have been able to fill their jobs or over-clients. It was also not possible to ensure a sufficient supply to respond to the explosion. Request.

“Things exploded. It was like a light switch, ”said Kirby Maron, president of Elmer Schultz Services, a family business in Philadelphia. “The job market is just out of control. We literally cannot hire a technician. We grew too fast, but the supply chain was not ready for it. “

Economic forecasters, who have little historical precedent to guide them through the aftermath of a global pandemic, are asking questions they cannot answer with confidence.

Is strong consumer spending a reflection of the economy and resilience, or is it temporarily bolstered by federal stimulus controls?

Was April’s Consumer Price Index a temporary hike or a worrying sign of accelerating inflation?

Is the two-month moderate job growth the result of too many good things? Does the employer want as many jobs as possible? Or is the job market as strong as economists think? Implication that there is not?

In many ways, the news was encouraging. From January to March, the economy grew at a tremendous rate of 6.4% per year. And this quarter, the pace is expected to accelerate to nearly double digits.

But the big picture of the US economy is pretty subtle. Here are five vital signs in detail.

Jobs

Employers added 559,000 jobs last month on top of 278,000 in April. These are generally considered very healthy numbers. However, with record vacancies and free consumers, predictors expected more jobs. Some economists expected that the recovery from the pandemic recession would increase jobs by 800,000, 900,000 and even over a million per month.

What explains the shortage?

Economists mainly point to what they call a short-term lag. Companies are posting job vacancies faster than applicants can respond. After all, many Americans have health issues associated with COVID-19, childcare issues with a delayed reopening of school, career uncertainty after many jobs have gone permanently in the past 15 months. , etc. In addition, some people earn more from federal and state unemployment assistance. than they did when they were working, taking time before looking for another job. I go.

Some say labor shortages cannot be solved by traditional methods. That is to say, increase wages and offer more generous benefits and working conditions. In fact, the process seems to have started. Average hourly wages increased significantly in April and May.

Consider Gina Schaefer, who owns 13 Ace Hardware stores in Herndon, Va., And Washington, DC, and hires staff quickly for spring and summer when sales are typically high.

Since March, Schaefer has hired nearly 120 people, both seasonal workers and longtime employees on behalf of those who retired last year when COVID devastated the economy. His company pays a minimum hourly wage of $ 15.50 to compete with a large chain that currently pays $ 15, offering health insurance, paid time off, sick leave and 401 (k) plans after employees have worked. for about six months. Make.

“We strongly believe that finding employees in a better workplace is a good thing,” she said.

consumer

After months of living at home, millions of consumers have returned home. Energetic and enthusiastic, their finances were bolstered by a $ 1,400 fiscal stimulus earlier this year. The surge in real estate and stock market prices has further increased the desire for consumption among the rich.

Consumer confidence is high. And after the $ 1,400 stimulus to most people made a big profit in March, Americans increased spending again in April.

That said, Rubeela Farooqi, chief US economist at High Frequency Economics, sees warning signs. Confidence and spending are still healthy, but declining. Retail sales surged in March, then stabilized in April. This suggests that the positive effects of the stimulus may have diminished. A similar trend was seen late last year, after the effects of previous federal stimulus began to fade.

Additionally, the Conference Board’s monthly survey of consumer confidence found that expectations for the next six months actually fell in May.

“I don’t know how it’s going,” says Farooqi.

inflation

Financial markets took an unfortunate shock last month when the Labor Ministry announced that consumer prices rose 0.8% from March to April and 4.2% from 12 months ago. This is the largest year-over-year increase since 2008.

Some prominent critics, including former Treasury Secretary Larry Summers, risk President Joe Biden’s trillions of dollars in federal stimulus funds causing inflation and forcing the Federal Reserve to resort to rate hikes of interest. Warns that there is sex.

However, Fed Chairman Jerome Powell and many economists say they don’t believe the inflation surge will last long. They say this primarily reflects a temporary supply chain bottleneck that has driven prices up, but it will ease over time. But for now, wood, computer chips and the like. Shortages of materials contribute to inflationary pressures.

Maron of Elmer Schultz Services in Philadelphia said the supply shortage in his industry is so severe that members of the Commercial Food Service Equipment Association trade association are sharing inventory.

“If you have it in stock, you can go to a friend’s house,” he said. “No, I haven’t seen anything like it in my business in the past 30 years.”

housing

The housing market has served as a source of economy and resilience during the pandemic, but it wants to shift to ultra-low interest rate mortgages and more generous deals to meet telecommuting needs. Supported by the needs of many closed families.

However, the housing boom has recently shown signs of fatigue as prices have risen to the point that many cannot afford, and the supply of homes for sale has been severely constrained. Homebuilding fell 9.5% in April, at least in part, because builders postponed the project due to higher costs for lumber and other supplies that helped drive up house prices. . Reported to.

New home sales fell almost 6% in April and purchases of existing homes fell 2.7%. As long as there is a shortage of available housing and selling prices continue to rise, many potential buyers will continue to look outside.

Manufacturing

Despite supply chain bottlenecks and labor shortages, American factories are thriving. The Institute for Supply Management’s manufacturing index rose to 61.2. Figures above 50 show growth, with manufacturers gaining for the 12th consecutive month.

Half of buyers surveyed by industrial groups say they have had difficulty finding workers. Given the supply issues, it is not clear whether the plant will be able to maintain stable production. ISM has found that supplier deliveries are progressing at the slowest pace since 1974. Of the 18 industries, 16 reported delivery delays.

AP business editors Christopher Rugerber (Washington) and Joyce M. Rosenberg (New York) contributed to this report.

US Economy: Lots of Growth, Not Enough Workers or Supplies Source Link US Economy: Lots of Growth, Not Enough Workers or Supplies



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Should you leave your home to your children in your will? https://tinigard.info/should-you-leave-your-home-to-your-children-in-your-will/ https://tinigard.info/should-you-leave-your-home-to-your-children-in-your-will/#respond Fri, 04 Jun 2021 21:31:49 +0000 https://tinigard.info/should-you-leave-your-home-to-your-children-in-your-will/ 3. Do your children get along well? The median price of homes in the United States – half lower, half higher – is $ 319,200. If you have multiple heirs and bequeath them a house worth several hundred thousand dollars, it can be difficult for them to agree on what to do with it. “If […]]]>



3. Do your children get along well?

The median price of homes in the United States – half lower, half higher – is $ 319,200. If you have multiple heirs and bequeath them a house worth several hundred thousand dollars, it can be difficult for them to agree on what to do with it.

“If the children are geographically far from the home, which is more common today, it can cause dissension among beneficiaries – especially if one of them is doing all the maintenance – because they cannot not fully enjoying the home provided as a legacy, ”says Gregory Giardino, CFP in Hawthorne, TX.

4. What is the title of the house?

Rules vary from state to state, but for many married couples, a home is typically held in a condominium with right of survivorship (sometimes referred to as a full tenancy), which means if one of the spouses dies , the other owns the house entirely. If both spouses die at the same time, the ownership of the house is decided by the stipulations of their will (or, in the absence of a will, by state probate laws).

It will also be important for the heirs to determine how the house will be titled and how the property will operate. What if one heir wants the money and the other two want the house? In this case, the heirs who want the house will have to buy back the one who does not want it, either in cash or through an intra-family financing contract. The last resort, of course, would be the court system, which is usually not the best place to form family ties.

Finally, are there any liens on the home for debts owed, such as tax arrears or overdue loans, that would be due when the ownership of the property changes? “Children are often surprised to learn this,” says Patricia Hausknost, CFP in Long Beach, California. “If they exceed the value of the house, it’s best to notify the first lien holder of the death and walk away. “

5. What is the tax situation?

Uncle Sam wants a share when a house is sold for a profit. The amount of the reduction comes down to what is called the base cost of ownership. Simply put, you are taxed on the difference between what you paid for the house and what you sold it for. But it is not that simple. For tax purposes, you can also add the value of certain expenses, such as major renovations, to the purchase price of the home to increase your base costs and thereby reduce the amount of profit you owe taxes on. Confuses? The IRS has a lot more to do with calculating the cost base.

The heirs get a break based on the costs. Under current law, when a person inherits a house, they get what is called a base mark-up, which means their cost base for taxes is on the date of their parents’ death or settlement of the estate. In other words, if they sell the house, the heirs won’t have to base their capital gains tax on what their parents paid for the house. Suppose the parents bought the house for $ 50,000 in 1980 and the house was worth $ 319,200 on the day the estate was settled. The heirs would have no profit on the house if they sold it immediately, and therefore no capital gains tax is due.

Parents could also sell their home today, and under the current tax code, $ 250,000 of profits will be excluded from capital gains for each person, which means a $ 500,000 exclusion from earnings for a married couple. . Some parents are tempted to transfer title to the house to their children while the parents are still alive. “Do not do it!” said Hausknost. The heirs will be responsible for the expenses of the house, including civil liability, and they will not get the gross-up base.

It should also be noted that a feature of President Joe Biden’s current tax reform proposal is the elimination of the base markup. “From a financial point of view, without the mark-up rule, it would make little difference whether the original owner left the house to the heirs or sold it himself,” says David Silversmith, CFP in Plainview, New York. . “But under the current law, I would advise my clients to keep the house and leave it to their heirs.”



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The big winner in the wild real estate market? House builders https://tinigard.info/the-big-winner-in-the-wild-real-estate-market-house-builders/ https://tinigard.info/the-big-winner-in-the-wild-real-estate-market-house-builders/#respond Fri, 04 Jun 2021 17:24:58 +0000 https://tinigard.info/the-big-winner-in-the-wild-real-estate-market-house-builders/ Antelope Valley in Northern LA County Now is the perfect time to build a house that companies are building in the oilfields. Nary an eyelash was beaten last month when two of the housing market’s biggest homebuilders – based in Pennsylvania Toll brothers and headquartered in Florida Lennar – acquired 173 acres of land in […]]]>


Antelope Valley in Northern LA County

Now is the perfect time to build a house that companies are building in the oilfields. Nary an eyelash was beaten last month when two of the housing market’s biggest homebuilders – based in Pennsylvania Toll brothers and headquartered in Florida Lennar – acquired 173 acres of land in Montebello, California, from Sentinel Peak Resources, a company that owns oil development land along the Golden State.

In a project that companies have dubbed “Metro Heights,” 1,200 homes are planned in Montebello Hills, 10 miles east of downtown Los Angeles, which has been pumping oil since 1917. A new twist controversial old project, the land is already cleared, and companies are looking for home buyers.

The Metro Heights website reads, “There will be active oil wells outside of the residential area. But he assures us: “No house will be built on abandoned oil wells.”

Metro Heights is part of a US residential construction market that is “totally bizarre,” said Tim Costello, CEO of Bdx inc., a site for new housing advertisements.

“I never remember a housing market that looks like this,” Costello said.

What “it” is are factors which in themselves are extraordinary. Record demand partly fueled by historically low mortgage interest rates. Low supply and officials recognizing the supply crisis. A shortage of materials that makes the price of wood a surprise national obsession. White collar workers in their second year of telecommuting and looking for a space.

The timing means home builders are moving in multiple directions at once and can feel like they’re throwing paint on a wall that isn’t wood. But make no mistake – if you’re an established home builder, it’s a roaring time.

“Put simply,” said Douglas Yearly, CEO of Toll Brothers during an earnings call earlier this year. “It’s our time.”

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