Peer Group Data

The banking industry has for decades collected data on various operations and financial ratios. It is relatively easy for a banker to compare his/her performance against peer banking companies. What is your operating ratio, expense load versus peers? Average loss on sale of a foreclosed home? Cost to deliver a specific service. That sort of thing.

Our ERC folks do a fine job of surveying the industry. But I cannot locate a resource to which all companies have contributed refined data used to develop objective comparative measures. Numbers are surely available but when I inquire within the industry, not much is available. One industry veteran referenced an excellent report from (I think) 2009 from ERC that was a one shot deal.

If such a report (a la the banker's Sheshunoff reports) exists, please direct me to it via a Comment. If not, let's work together to develop one. After all, our clients operate in highly competitive markets where this sort of resource, and the discipline that comes with it, is essential.

Overhang

There are now 4.1 million homes either 90+ days past due or in foreclosure. Add to that homes already owned by lenders, and we have a serious overhang issue.

The good news is that the rate of new problem loans has declined in the past year by half.

What steps are relocation managment companies, clients and vendors taking to deal with the impact of this issue? Process, use of data, home marketing, policy development all require attention in light of unprecendented, and lingering, affects of our housing challenges.

Use "Comments" if you want more information, and the source of the data.

150th Anniversary

Yes, this year is the 150th anniversary of the Civil War. It began in April, 1861 and ended in April 1865, after over 600,000 had died. (Adjusting for population, the same rate today would result in 6 million dead). Periodically, I will post historical items about the war, and share websites that offer perspective. Also, books - one historian has said more has been written about the Civil War than any event in US History. No wonder.

We are approaching the date of the First Battle of Bull Run (aka First Manassas) - July 21 1861, In this first great encounter of armies, Union and Confederate soldiers met not far from Washington DC. Ladies and gentlemen in their Sunday best packed picnic lunches and drove out the "watch the show". Nearly everyone in the north assumed the war would be short. Maybe even only one battle and those Rebs would come to their senses.

Instead, the spectators witnessed the reality of modern war, and a terrible defeat of Union forces. Nearly 5,000 casualties suffered, and a disorderly Union retreat, horrified and terrified the residents. They hurried back to DC in a panic, entangling with Union soldiers eager for escape routes. Only one year later, at Antietam nearly 5X the casualties would be suffered in 12 hours in a Union victory (just barely). The war would go on for another 31 months.

I recommend Ken Burns' The Civil War series, which will undoubtedly be shown on PBS stations near you, wherever you live, over the next year.

Reduction in Max Loan Guarantees Coming Soon

The federal government will reduce the size of loans eligible for government backing effective October 1.

As an emergency measure three years ago, Congress raised to as high as $729,750 the maximum loan amount that Fannie Mae, Freddie Mac and federal agencies could guarantee. Now those limits are set to decline in hundreds of counties across the U.S. as the government attempts to reduce its footprint in the mortgage market.

The new limits will vary by location, but will drop to $625,500 in top-tier markets such as New York, Los Angeles and Washington, D.C.

Contact us via "Comment" if you would like a list of reductions by major market.

FEMA and the Missouri River

FEMA issued a ruling in mid June that was effective retrospectively to June 1, 2011. The ruling appears to remove flood coverage under the National Flood Insurance Program (NFIP) for any home in the Missouri River basin.

You should check to see what sort of home inventory you currently own and/or manage in the affected areas, as you may be operating without flood coverage. Also, relocation companies should search their in-process home sale assignments for homes covered by the FEMA ruling.

Best not to be surprised by a coverage problem after a home has been acquired, or affected by a purchaser to whom disclosure is required.

(Did you know that the Mississippi-Missouri river system is the third ranking system on earth?)