Home Builders Association of Chester and Delaware Counties

HBA Newswatch

August 1, 2008

Citizen's Bank Invested $142 Million In Delco's Revitalization Program
By Barbara Ormsby
Delaware County Council Chairwoman Linda Cartisano and executives of Citizens Bank presented the annual report at a news conference, July 22, on the bank's $142 million community initiative that supports the county's Revitalization Program. Ms. Cartisano noted that for the third consecutive year, the bank's program has exceeded its goals. Ralph Cicalese, Citizens Bank's market executive for DelawareCounty, reported that the program's goal for the third year was to provide $28.4 million in loans and program support. An analysis of the annual results shows that $40.1 million was delivered in loans and grants for projects and programs that foster affordable housing, home improvement, economic development, financial literacy, small business and commercial development.
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Paulson: Housing remains biggest economic challenge
By MARTIN CRUTSINGER
WASHINGTON — The $168 billion government stimulus effort has been a timely support for the economy and will continue to boost growth in the second half of this year, Treasury Secretary Henry Paulson said Thursday.
Paulson predicted in a speech to a Washington audience that the economy will continue growing at a moderate pace for the rest of this year, despite housing slump-induced problems.
"We are making progress although not in a straight line," Paulson said. "Housing continues to be at the heart of our economic challenges and remains our most significant downside risk."
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Mortgage rates fall
By MARTIN CRUTSINGER
WASHINGTON — Rates on 30-year mortgages, which shot up last week to the highest level in nearly a year, dropped slightly this week.
Freddie Mac reported Thursday that the nationwide average for 30-year mortgages dipped to 6.52 percent this week, down from 6.63 percent last week.
While the new level was still the second highest this year, it was down slightly from last week when investors were concerned about financial troubles at Freddie and Fannie Mae, which together hold or guarantee nearly half of the nation's mortgages.
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Homebuilder Stocks May Benefit from New Housing Bill
By Brett Arends
The new housing bill may well mark a turn in the housing market. Maybe we won't see a quick rally in home prices, especially in the hardest-hit areas. Of course, only time will tell. Markets have a way of making investors look foolish. But there seems little reason for prices to keep falling now that Uncle Sam has agreed to step in and underwrite new mortgages on distressed homes at 90% of the current market value.
Sooner or later, the banks are going to have write these homes down to today's prices anyway. Factor in a 3% clip for taking part in the program and Hope for Homeowners will get them out of a doomed loan at 87% of the asset's residual value. I've heard of worse.
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