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Daily Archives: March 9, 2012

Housing Crisis to End in 2012 as Banks Loosen Credit Standards

Housing Crisis to End in 2012 as Banks Loosen Credit Standards


Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.

Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.

However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.

Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.

Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”

In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.

While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.

Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generate actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.



Shakespeare Returns to Warner Robins Little Theatre

Shakespeare Returns to Warner Robins Little Theatre

By ALLINE KENT – Sun News correspondent

WARNER ROBINS — Due to public demand, The Warner Robins Little Theatre will be presenting an encore performance of “The Complete Works of William Shakespeare (Abridged) (Revised).”

The play was written by Adam Long, Daniel Singer and Jess Winfield, the founding members of the Reduced Shakespeare Company, and is the longest running comedy in London’s West End, the play’s director Celia Hohnadel said. The show has played all over the world.

During the play, three actors perform all 37 of Shakespeare’s plays and his sonnets in 97 minutes. Some of the plays, like the comedies that have similar plot twists, are told as one big story.

The Warner Robins Little Theatre will present “The Complete Works of William Shakespeare” 8 p.m. Friday and Saturday. Tickets are $10. Admission will be first come, first admitted until the performance is sold out.

Leslie Morales is the producer of the show and has been a member of the board of directors for the past four years. Morales said that many of WRLT’s plays get requests for additional nights, but doing an encore performance during the regular season is difficult.

“We had such a great response from those that actually came to see it,” Morales said, “but we also had a great response from those who had heard about it from others. With the season ending, it seemed like a perfect time to do an encore.”

While the first run of the play was a dinner theater, this time the show will be a regular performance.

“It really came down to two things,” Morales said. “We wanted to get people into the theater and make them aware of what the theater is doing and what we have coming up.”

Morales said that attending a performance gives audiences an unique opportunity.

“It’s a chance to watch members for your own community act in a play and to be a part of that.”

Auditions for the Warner Robins Little Theatre’s last production of the season, “No Sex Please, We’re British,” directed by Bill Felton, will be held Monday and Tuesday at 7:30 p.m. at the Warner Robins Little Theater, 502 S. Pleasant Hill Road. Six men and four women are needed. Play dates are April 13-14, April 19-22 and April 26-28.



Housing Market will Begin to Emerge This Year

By dandadevelopment

Consumer credit data suggests spending will increase and the housing market will begin to emerge from its slump this year, according to Equifax and Moody’s Analytics.

Statistical analysis applied by, a joint product of Equifax and Moody’s, to new performance data for consumer credit supports the forecast issued by the credit bureau and ratings agency.

Both companies note that as key market data align with pre-recession totals, consumers should anticipate steady economic growth for major credit sectors.

Looking across the full spectrum of consumer credit, Equifax and Moody’s found that delinquency rates for auto, bankcard, and consumer finance are back to pre-

recession levels. These sectors are expected to contribute to the U.S. economy’s nascent recovery.

The home mortgage lending sector continues to see the highest percentage of delinquencies, the companies’ report notes, even with outstanding mortgage balances (including first liens and home equity lines and loans) having declined by $1 trillion since 2008 and continuing to drop.

Even so, mortgage rates are at all-time lows, with refinance activity at high levels and offsetting diminished demand for new loan originations, according to Equifax and Moody’s.

The companies also note that tighter lending guidelines are reflected in loans made to the prime risk segment (those borrowers with an Equifax score of 700 or above). Consumers that fit the bill of a prime risk now account for more than 80 percent of all new mortgage originations.

“After spending recent years in the financial doldrums, U.S. consumers are poised to make a comeback in 2012,” according to Amy Crews Cutts, chief economist for Equifax.

She says the most promising indicators are showing up in consumer spending and the auto financing sector, but even the housing market is exhibiting incremental progress that points to increased traction in the coming months.


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