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 FHA RELEASES CONDO LOAN RULES

WASHINGTON (Associated Press) – The Federal Housing Administration (FHA) has released new lending insurance restrictions for
condominium buyers and developers.
The FHA’s tighter lending standards include restrictions on buildings with poor finances, too many delinquent owners and a high
number of rentals. The agency will also require at least 30 percent of units in new buildings be pre-sold before it will insure any
loans; this will rise to 50 percent in 2011.
Before these rules went into effect, buyers needed only a 3.5 percent down payment to be insured.
The stipulations have been set to protect the FHA from insuring loans with a risk of falling into delinquency.
About 18 percent of loans currently insured by the FHA are either delinquent or in foreclosure, and the agency’s money reserves have
dipped below the federal minimum.

 FIVE FACTORS AFFECTING COMMERCIAL REAL ESTATE

NEW YORK (Real Estate Center) – A number of factors could affect commercial real estate transactions going into 2010, Real Estate
Center Chief Economist Dr. Mark Dotzour reported after serving on an economic panel at the ninth annual Real Estate Mezzanine
Loans and Distressed Debt conference Wednesday in New York City.
Among those factors:
• Banks are hesitant to sell distressed real estate assets.
• Many loans are going to special servicers and are likely to overwhelm them with volume in 2010.
• The new commercial real estate lending model for 2009 and 2010 is a 50–60 percent loan from a life insurance company for
larger deals and possibly from commercial banks for smaller deals.
• Real estate investment trusts (REITs) are raising a "war chest" of money to purchase distressed real estate by buying troubled
loans.
• The country may be another year away from the end of the "perfect storm" of commercial real estate caused by rising cap
rates, falling rents, negative job growth, high tenant finish costs and lack of available financing.
"Hotels, condos, suburban office and land development are currently areas where investors are afraid to go," Dotzour said. "Bold
investors will make a lot of money in the future if they can buy these properties at the right price."
The conference was sponsored by Information Management Network.

 Employment Trends Animated Map

View an animated map providing a striking visual of employment trends over the last business cycle using net change in jobs from the U.S. Bureau of Labor Statistics on a rolling 12-month basis.  Visit: http://tipstrategies.com/archive/geography-of-jobs/

 EPA FUNDS HELP KEEP TEXAS CLEAN

DALLAS (U.S. EPA) – The Environmental Protection Agency has awarded $2.9 million to the Texas Commission on Environmental
Quality.
The funds will be used to assist in investigations, emergency responses, cleanup, risk management, alternative water supplies and
relocation of residents where leaks from underground storage tanks have occurred and the responsible party is unknown or is unwilling
or unable to respond.

 ALL IN THE FAMILY, ALL UNDER ONE ROOF

HOUSTON (Houston Chronicle) – Data in the 2008 American Community Survey show that about four million American households
have three or more generations living under the same roof, and sociologists and demographers expect that trend to increase in the near
future.
What is behind the surge in multigenerational households? The recession and baby boomers, experts say.
With layoffs and furloughs, people are moving back in with their parents or other family members to save money. Also, many baby
boomers are taking care of their elderly parents as the cost of long-term care soars.
About 4.5 percent of Texas households are multigenerational, the third-highest percentage in the nation, according to U.S. Census
data.