The Government National Mortgage Association (Ginnie Mae) today announced that it will create a new security backed by fixed-rate Federal Housing Administration (FHA) that will refinance loans originated to delinquent borrowers and refinance loans to borrowers with second liens. "We are proud to support FHA's efforts to assist even more borrowers by providing an efficient securitization vehicle for homeowners with special needs," said Thomas R. Weakland, Acting Executive Vice President of Ginnie Mae. "Securitizing these loans in custom pools provides significantly lower rates for these new borrowers and ensures that investors have access to critical information about these loans."
The new security will be a multiple-issuer pool type under the Ginnie Mae II Mortgage-Backed Securities Program, and will be available for pool issuances beginning December 1, 2007.
"The creation of this new security is an example of how Ginnie Mae helps expand access to affordable housing for borrowers by linking the capital markets to the nation's housing markets," said Weakland.
Ginnie Mae is a wholly owned government corporation within the U.S. Department of Housing and Urban Development. Ginnie Mae pioneered the mortgage-backed security (MBS), issuing the very first security in 1970. An MBS enables a mortgage lender to aggregate and sell mortgage loans as a security to investors. Ginnie Mae securities carry the full faith and credit guaranty of the United States government, which means that, even in difficult times, an investment in Ginnie Mae is one of the safest an investor can make.
Historic Homes Exhibition
The Louisiana Recovery Authority (LRA) invites homeowners and contractors involved in rebuilding historic homes to attend the Traditional Building Exhibition and Conference being held in New Orleans at the ErnestN.MorialConvention Center for free from October 18 to October 20.
The LRA is one of the partners of the conference, the only national trade show geared to owners and those involved in renovating or restoring historic homes and traditionally-inspired new home design and construction. The event will showcase more than 200 exhibitors of hard-to-find, historically accurate products and services for those who are rebuilding and restoring their homes to maintain the architectural and cultural history of New Orleans and the GulfCoast.
Interested homeowners, developers, contractors and architects can gain free admission to the Exhibit Hall at the conference, where they can see free demonstrations and access exhibitors of products and services necessary to rebuild historic homes. Attendees must pay a fee to attend workshops and seminars, which may already be sold out.
To download the coupon for free admission visit: http://lra.louisiana.gov/assets/TradBuild101807.pdf
Attendees must print this coupon and bring it with them when they register for the conference.
The Exhibit Hall will be open for touring from 11 a.m. to 5 p.m. on Thursday, October 18 and Friday, October 19 and from 11 a.m. to 4 p.m. on Saturday, October 20. Free workshops in the exhibit hall include a discussion of traditional building as the original "green" building and workshops on historic windows and plaster walls.
Thousands of architects, designers, contractors, developers, planners, building owners, and homeowners will attend the conference, choosing from more than 70 educational seminars and workshops covering a wide array of topics and product segments, including window and sash repair, door and hardware installation, plaster repair, roofing, siding, ornamental ironwork and paint selection. The Exhibit Hall will feature how-to information and demonstrations of traditional building techniques and old world craftsmanship.
For more information about the Traditional Building Exhibition and Conference, including a full schedule of events, visit www.traditionalbuildingshow.com.
Foreclosure Prevention
According to HUD, The Bush Administration's foreclosure prevention initiatives are helping more families keep their homes, U.S. Housing and Urban Development Secretary Alphonso Jackson said today at the Mortgage Bankers Association 94th Annual Convention. Jackson highlighted several programs and proposals that the Administration has put forward to help struggling homeowners who have been caught up in the subprime wave.
"Our actions now to fix the housing market will benefit Americans for generations to come. This will help make our economy stronger and assist the world economy. But, most importantly, it will give millions of people a chance at wealth creation, financial security, and a place to raise their children in love and safety," Jackson said during his address to more than 2,200 representatives of the housing industry at the MBA Convention.
On August 31, President Bush announced several new steps to help American families keep their homes, including a new foreclosure avoidance initiative called FHASecure. Administered by HUD's Federal Housing Administration (FHA), this mortgage insurance program is geared toward borrowers who have good credit, but who may not have made all of their payments on time because of resetting interest rates. For the first time, FHA is able to offer many of these homeowners an affordable option to refinance their existing mortgage so they can make their payments and keep their homes. This change, in addition to other existing FHA products, will bring the total number of families FHA projects to help next fiscal year to approximately 240,000.
"Families with an otherwise strong credit history, but in default because of the reset in their mortgage rate, can get help through FHASecure. These are people who would have lost their homes without efforts to provide affordable refinancing options," Jackson added.
Jackson also said he and President Bush continue to call on Congress to pass FHA modernization legislation. The Administration's FHA modernization proposal, which was first sent to Congress in April 2006, would lower downpayment requirements, allows FHA to insure loans in higher cost areas, and give FHA more pricing flexibility. These reforms would empower FHA to reach 200,000 more families next year that need help - first-time homebuyers, minorities, and those with low-to-moderate incomes. The House has overwhelmingly approved the bipartisan legislation, and it is hoped that the full Senate will act soon.
"The President wants FHA to continue to help bring stability to the real estate market - the reason it was formed nearly 75 years ago. FHA can help break the cycle of foreclosure and price depreciation, and bring much-needed liquidity to a mortgage market that has quickly become constricted. Each day of delay unnecessarily places thousands of families at risk of foreclosure," Jackson said.
Recognizing that buying a house can be a daunting and confusing process, HUD has 2,300 approved housing counselors in the United States. The Administration has increased funding for housing counseling by 200 percent since 2001, Jackson said. Earlier this month, HUD announced more than $44 million in new housing counseling grants to over 400 state and local efforts.
"Consumers must be educated. Often homeowners don't carefully read their contracts; some don't read them at all. The key is to be able to read and understand the fine print, and also to know when to ask for help. The President wants even more money for housing counseling, asking for some $50 million in his new budget," Jackson emphasized. Finally, over the past six weeks, Secretary Jackson and Treasury Secretary Henry Paulson have reached out to a wide variety of groups that offer foreclosure prevention, counseling, and refinancing assistance for homeowners. Last week, Jackson and Paulson announced HOPE NOW - a private sector alliance to help more Americans keep their homes. This partnership, which includes the largest mortgage servicers, leading housing counselors, investors, and large trade organizations, will expand mortgage financing options, identify homeowners before they face hardships, help them understand their financing options, and allow them to find a mortgage product that works for them. Louisiana Schools
Following the successful opening of schools in the Recovery School District and the announcement that five sites have been selected for "as new” or brand new schools in New Orleans, State Superintendent of Education Paul G. Pastorek publicly thanks the Louisiana Recovery Authority for its support in helping to rebuild schools.
"It has taken a Herculean effort to get where we are today with a full staff of certified teachers, an infusion of technology in all of our classrooms, humane bathrooms in every building and a hot lunch for all students,” said Pastorek. "The LRA and its Executive Director Andy Kopplin have been instrumental in ensuring that we have had the resources we need to take these critical steps toward building a world class school system in New Orleans.”
Since its creation shortly after Hurricanes Katrina and Rita disrupted education in south Louisiana, the LRA has:
Allocated $200-million in Community Development Block Grant funds to help hurricane impacted school districts cover the costs of rebuilding and building new schools, with $107 million going to New Orleans.
Played a key role in designing the 2007 RENEWAAL Act, which brought $30 million to the GulfCoast (more than $22 million to Louisiana school districts) to fund financial incentives designed to attract teachers to work in hurricane-impacted school districts.
Provided guidance and helped Senator Mary Landrieu structure a bill currently before the Senate that would create a pilot program for hurricane impacted school districts that would speed the delivery of FEMA rebuilding dollars to school districts.
Provided staff to Superintendent Pastorek to assist in the transition of his leadership of DOE/RSD in the following means:
Created the RSD Kitchens and Restrooms Tiger Team, made up of RSD employees, construction experts, National Guardsmen, contractors, and community members to determine the most effective and efficient means of delivering hot meals and clean restrooms to all RSD students by the first day of school.
Worked closely with FEMA to ensure maximum federal payout on infrastructure initiatives, including the repair of kitchens and restrooms of the RSD.
Created the RSD Recruitment Tiger Team to assist in launching a major effort to hire teachers in the RSD by leveraging RENEWAAL funds, non-profit organizations and the RSD recruitment staff. By the first day of school, the RSD had a 10-20% surplus of teachers and a student -teacher ratio below 20-1 in elementary schools and 25-1 in high schools.
Served as the RSD ’s partner in working with the federal government to deliver additional rebuilding funds to hurricane impacted Louisiana school districts.
Tidewater
Tidewater Inc. announced today that fiscal second quarter financial results for the three months ended September 30, 2007, are estimated to be between $1.54 - $1.57 on a fully diluted per share basis. The Thomson First Call consensus estimate is currently $1.71 per share. The Company reported fully diluted earnings of $1.55 per share in the quarter ended June 30, 2007.
September 2007 quarterly earnings are expected to reflect slightly higher vessel revenues and vessel operating costs and lower gains on asset sales when compared to results reported in the prior quarter.
The estimated earnings include reduced vessel utilization related to higher levels of regulatory drydockings during the September 2007 quarter. The regulatory drydockings, several of which involved large deepwater vessels that enjoy high current dayrates, negatively impacted repair and maintenance expenses and, more importantly, negatively impacted vessel revenue for the quarter. While worldwide vessel revenues are expected to be slightly ahead of the prior quarter’s total, the Company estimates the increased maintenance downtime negatively impacted the September 2007 quarter’s revenue gain over the prior quarter by a net $6 million.
