Economy


The Senate on Thursday afternoon approved a two-month extension of the National Flood Insurance Program (NFIP), an action that was made possible by an agreement Senate Majority Leader Harry Reid (D-Nev.) made to take up a longer-term five-year reauthorization when the Senate returns from the Memorial Day break. The Senate approved the extension by unanimous consent, after Reid declared, “If it were to expire … real estate transactions would come to a screaming halt. Taxpayers would be on the hook for future disasters. This is something we have no choice, we have to get it done.” The bill still needs to pass the House. C

Crazy, who has time to go back in session and call for another vote when the reality is…. there are entire metropolitan cities in the U.S. that need flood insurance to go to an Act of Sale. Almost all of the southern states, and now some parts of Iowa, Ill, the Dakota’s, Missouri and Georgia.

Some real estate investors have new loan options for the first time in years. The details: In recent years, small landlords like me have had a tough time finding a bank to finance more rental property purchases. Once you had more than four rental property loans, Fannie Mae and Freddie Mac were no longer willing to guarantee your loans, even when your credit scores were top-notch and the property was able to turn a profit from day one of ownership.

Now, some banks participating in the HARP program are taking applications from landlords with multiple properties and lots of mortgages. HSBC recently agreed to look at a mortgage on a property I own in Baltimore. My current interest rate there is over 7% and if I get the HARP refinance it will fall to 4.6%.

Every month the White House conducts an African American Outreach Update Call. During this month’s call you can find out about the Presidents call to Congress on a To Do List for Jobs and The Summer Jobs Plus Initiative for Youth.

Date: Tuesday, 5/22/12 at 6:00 p.m. EDT
Call-in number: (800) 230-1092
Title: White House Update Call
If you plan on participating in the call, please RSVP at: http://www.whitehouse.gov/webform/african-american-outreach-monthly-update-call.

You can also follow Director of the Office of Public Engagement Jon Carson on Twitter @JonCarson44.

…at the Civil Right Awards dinner honoring him I’m Washington DC 5/15/12. We need more like him, people willing to carry the mantle.

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For the 2012 tax year, you can take a tax deduction on medically necessary home improvements — like installing a wheelchair ramp and other projects that make life easier for an ill or injured family member — if you: Itemize deductions and spend more than 7.5% of your adjusted gross income on the upgrades. Starting in 2013, if you’re under age 65, you can’t take the tax deduction on medical expenses until you spend 10% of your AGI. But if you’re 65 or older in 2013, you can stick with the 7.5% AGI tax deduction threshold through the end of 2016.

The rules for tax deductions on medical home improvements are tricky:
1. Start with what it costs to modify your home.
2. Subtract the value the upgrades add to your home.
3. What’s leftover is your tax deduction — if you meet your AGI threshold.
How it works: Say you’re 45 years old and spend $20,000 to put a bathroom on the first floor of your home because your husband can’t climb stairs anymore. Your AGI is $100,000. A REALTOR® says the bathroom adds $10,000 to the value of your house.

Today, Senate Republicans blocked legislation that would have prevented interest rates on student loans from doubling at the end of June.

In a statement to reporters, Press Secretary Jay Carney expressed his dissatisfaction with the vote:

It is extremely disappointing that Republicans in the Senate today voted to ask millions of students to pay an average of $1,000 each in order to protect a loophole that allows millionaires to dodge payroll taxes. On July 1, more than 7.4 million students across the country will see their interest rates double unless Congress acts. We’re pleased that despite failing to address it in their budget, Republicans in Congress now profess to be concerned about this coming rate hike. But now it’s time for them to stop refighting old political battles and prove they’re serious by proposing a real solution to keep rates low for students without burdening middle class families or undercutting preventive health care for women. We look forward to continuing to work with Congress to prevent rates from doubling and ensure that students continue to get a fair shot at an affordable education.

1. Refinance with new FHA fees : In a nutshell: FHA raised insurance premiums for new borrowers, while lowering fees for some existing customers who refinance, making comparison shopping with private mortgage insurance worthwhile. Mortgage insurance covers the lender against losses caused when borrowers stop making payments.

The details: FHA’s new insurance premium rates include a great deal for existing FHA borrowers — you can refinance by paying a miniscule .01% upfront fee and an annual premium of just .55% starting June 11.

The catch: The deal is only for home owners who got their FHA mortgage on or before May 31, 2009. The latest FHA deal for new FHA customers buying homes isn’t nearly as sweet. You’ll pay a whopping 1.75% upfront fee and an annual premium of 1.25%.  For a $200,000 loan, that’s $3,500 for the upfront premium payment and $2,500 for the annual premium. Go on the internet and use the mortgage  calculators (MGIC, Genworth Financial) to check how your payment would change if you have a smaller or larger down payment. Private mortgage insurance is based on the size of your down payment (5% is typically the minimum).

Does “natural” mean organic? Should you buy anything labeled “non-toxic”? Here are the truth and eco-facts about many of the green terms you find on product labels. What’s really green? Soon you’ll have a little more confidence about green product marketing claims, such as “biodegradable” and “recyclable”: The Federal Trade Commission, which sets standards for the use of environmental claims in its Green Guides, is getting tougher on green terms.

1. “Organic”: a green term that really means something
: Organic is the one term in our list that’s federally regulated — by the U.S. Department of Agriculture, to be specific. Product makers making this claim must prove their stuff is “produced without antibiotics, hormones, pesticides, irradiation, or bioengineering.” Period.

FTC is cracking down on these terms

2. “Recyclable.” After the new guidelines are adopted, a manufacturer can use this term without a caveat only if a substantial majority of communities nationwide have facilities that can actually recycle its product. Before you buy, do your homework to see what you’re able to recycle locally. Also, take a closer look when a product claims to be “recycled”
3. “Biodegradable.” When you see this term, you think, “Great, I don’t need to worry about throwing this away; it’ll break down naturally.” But many products labeled biodegradable need ideal composting conditions to break down — and some won’t degrade even then.
The FTC’s new guidelines require that products or packaging labeled “degradable” break down within a year in normal disposal conditions. That means the term likely won’t apply to anything you’d throw in the trash, because items simply don’t degrade in landfills. It’s far better to reduce waste in the first place than to expect it to disappear.
4. “Compostable.” In the future, products with this claim shouldn’t take any longer to break down than the rest of your compost pile.
5. “Non-toxic.” The FTC’s new guidelines say that non-toxic claims should mean the product isn’t harmful to humans and safe for the environment. But research the product online if the label is vague. And definitely don’t assume kids or pets can ingest it safely.

The fuzziest green term of all

6. “Natural” is unregulated by the government. It’s not interchangeable with organic or healthy, although manufacturers want you to think if it’s natural, it has to be good for you, right? Not so much. Take ammonia. It’s a naturally occurring compound, but it’s also a toxic pollutant. Without context, the word natural doesn’t mean much.
A label to help you decide: When you’re just not sure about a product’s claims, look for certification by a reputable third party — like Scientific Certification Systems. Its green-and-blue SCS label provides some reassurance that a product lives up to its claims. SCS sets tough standards for the terms biodegradable and recycled content.
Some SCS guidelines: SCS only certifies liquid products as biodegradable — cleaners, detergents, and soaps that break down completely in natural conditions in 28 days; Recycled products include a wide array of building products — windows, doors, insulation, carpets, tiles, and more — so seek them out. (Houselogic 5/7/12)

“@BarackObama: “As long as I’m President, I will never allow Medicare to be turned into a voucher that would end the program as we know it.””

“In the 21st century, higher education can’t be a luxury—it’s an economic imperative that every American should be able to afford.”

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