This new home may not be in an established neighborhood, but it is in the right neighborhood - South Eugene. The price per sq ft for this neighborhood is normally well above this.

Popularity: 11% [?]

This bill moved through the Oregon Senate this month as a result of the subprime mortgage meltdown. It’s now moving through The House for ratification.

A friend of mine who owns an above-prime mortgage brokerage in Eugene sent me an article. Below is a snippet from that article:

Copies of the current bill, SB 965, and the UFL-proposed amendments are enclosed as attachments. Though the current bill (prior to the possible inclusion of those amendments) does not specifically ban programs, it has a broad definition of “non traditional mortgages”, which may even include any traditional fully amortizing agency ARM loan, if the DCBS so chooses, in addition to all low doc/no doc loans, interest only loans, option ARMs and negative amortization loans). Though the guidelines on which the bill was based used language like “should consider” when discussing underwriting approaches to those products, the bill says “shall”, which legally means “MUST”. On all of those products, originators (funding lenders and brokers) will be subject to re-underwriting scrutiny by DFCS auditors, and suffer major fines and penalties if the DFCS considers their underwriting decision to be unacceptable. Most troubling, in recent meetings with DFCS leadership, they have indicated that they would not accept automated underwriting findings and the documentation that the AU systems allow through the government/GSE systems (DU/LP and others). For example, they would require that income be verified, even if DU called for a verbal VOE only on a fixed rate traditional loan. And, the DFCS would not allow higher-than normal –guideline debt to income ratios permitted by AU findings if their auditor considered them excessive. This would preclude us from serving many borrowers .The need to educate the DFCS on our business and the harmful effect their decisions would have on our ability to help people buy and finance homes is great, but this bill may go into effect before we have that chance. Thus, many wholesalers who are not owned by or part of national banks (de-facto exempted under the Wachovia case, if not so already) and mortgage brokers may choose not to do any of these loans, or at least not do them in Oregon.

What’s important for you to remember and focus on in the communications we send to our legislators is the effect these changes will have on consumers, not just the impact that it will have on our businesses. If the bill passes as is, consumers in Oregon will be harmed by:

• Reduced ability to qualify for home mortgages on the purchase or refinance of homes.
• Reduced availability of mortgage credit. Borrowers would experience unacceptable service levels due to the inability of remaining providers to provide mortgage credit, should mortgage brokers and the majority of those wholesalers who fund loans no longer be capable of providing their services if the uncertain risk of DFCS review and penalties made continued business an unacceptable risk. According to an independent study conducted by the National Association of Mortgage Brokers (NAMB) in 2005, mortgage brokers originate two out of every three loans nationwide. Most loans are funded through wholesale lenders not exempt from this bill (though bank owned servicers who eventually purchase over 80% of those loans themselves, simply require adherence to the AU guidelines).
• Higher interest rates, due to reduced competition. Only national banks and their affiliates (all of whom will be continuing to use the automated underwriting vehicles, as they do now) will have the ability to make Non Traditional and/or Traditional home loans as they have been done nationally for nearly ten years.
• Increased likelihood of discrimination in underwriting of home loans (one of the main reasons AU systems were adopted was to provide for objective loan underwriting that is “blind” to any possible discriminatory factors). AU has been credited for the increase in nationwide homeownership … particularly among minority, inner city, and rural market borrowers.
• Loss of the benefits of the underwriting standards used in our industry. Those standards have been developed by the federal government, government sponsored enterprises, and/or our largest banking institutions utilizing more than 30 years of empirical loan performance data, and encompassing literally millions of mortgage loan transactions. Ignoring such superior information, and relying on the subjective opinions of the DFCS, reverses decades of progress in establishing sound underwriting guidelines that have unquestionably and positively expanded home ownership. It has further saved Oregon home owner/consumers literally millions of dollars in lower interest rates, lower closing costs, and availability of more financing options from which to choose.
• Declining home values, which almost certainly would be reduced as credit availability is restricted. Many potential home buyers, particularly those using first time homebuyer programs, would find such financing severely limited, or only available through national banks. Trickle down effects of such an occurrence would include reduced property tax revenues for other important social programs, like school funding and public services.
• Failure of this bill to focus on protection of Oregon consumers from “Predatory High Cost Home Loans,” and most specifically, Predatory High Cost Home Loans that include loan features listed as Non Traditional. Approximately 4 weeks ago, this bill was amended to now encompass both Prime or traditional as well as High Cost home loans. This bill will NOT focus on curbing abuses in the Sub-Prime markets, but WILL substantially restrict the normal and positive functioning of the Prime mortgage markets.

The intent of those supporting this bill in its current form was undoubtedly good: to protect the consumer. Unfortunately, it does more to harm than help homebuyers of the state.

Being naturally distrustful of government’s need to over-regulate, I recommend that you look at the government’s bottom-line incentive for regulating a sub-prime industry that the economy and market has already reshaped. Like…

How many people have been affected by the crisis? Who is benefiting and who will lose? Will people with money management skills, people who need a second chance, now lose the ability to get into homes?

What did the “buyers” do themselves to cause this? To assume riskier loans than they themselves knew they could repay? How does this educate people to learn more about money management, financial diligence, etc.

I can see the value in relieving some of the pressure for sub-prime buyers by giving them a get-out-of-bankruptcy-free card, the problem is that that card has already been played by so many, so often, that there’s probably little the government can do there.

A bill made in haste, without considering the relative economic impact, is not a wise bill. It’s a knee-jerk reaction to previously unwise business practices. Business practices that the market is no longer going to tolerate.

Popularity: 23% [?]

Congratulations to the folks over at Trulia for scoring big on another round of funding. $10 million to be precise. They have really been moving fast to push out new tools and better access to information, so I’m not surprised to see venture capital dollars flow in their direction.

I have struggled a bit in integrating their API into this site, but I know with time and patience that will come. Lot’s of patience since Wordpress strips out almost all javascript in posts. There are workarounds, but so far they haven’t worked around for me.

Popularity: 10% [?]

Given that most 3BR homes in Eugene have been selling for $300K+, and especially homes in safe, family-friendly neighborhoods like this one, this one should go quickly. The price may be discounted a bit due to proximity to a large nearby electrical station, as well as the freeway. The freeway noise isn’t bad however, and I believe that this entire corridor will be getting a sound wall built as per the new overpass. That leaves the electrical station, which some people will find more bothersome than others. It’s interesting that there are three homes near this one, all selling at a discount. Do your homework; ask the neighbors why those four homes are for sale at once. They might simply be investment homes.

Popularity: 17% [?]

I received this email, from an email list being passed around amongst friends. Not sure how much play this has received, but posting it here can only help further educate the “silent majority” into being proactive when it comes to the development of Downtown Eugene. Downtown is not just for struggling artists, entrenched landowners, and latchkey kids. It’s for all of Eugene, including those of us who don’t live there. In fact, real “diversity” is when each segment can coexist without each being more offended than the other about who’s getting more political chips. Politics needs to involve some compromise or it becomes an oligarchy of the radical few!

Well, this is it. Next week the City Council will decide if and what steps will be taken on West Broadway Redevelopment. Those who oppose revitalizing downtown have told their story, now we need to tell ours. Take 5 minutes right now to email and/or call and ask them to vote Yes on the KWG project. If you are so inclined, you may also tell them you are a member of Shop Eugene. More detailed information about Shop Eugene
and the KWG proposal below.

mayorandcc@ci.eugene.or.us 682-5010

And/or send individual emails to the swing votes:

Kitty.Piercy@ci.eugene.or.us 682-5010 (message)

Alan.Zelenka@ci.eugene.or.us 344-5721 (message)

Chris.E.Pryor@ci.eugene.or.us 484-6896 (message)

Andrea.F.Ortiz@ci.eugene.or.us

If you are not currently on the listserv for Shop Eugene, email shopeugene@comcast.net. You will receive updates on what’s happening with downtown development, how you can get involved, and an invitation to a strategic planning gathering.

Shop Eugene’s Purpose

Each year, Eugene residents spend millions of dollars shopping outside of their community. Shop Eugene is a coalition of local people who want to create a thriving downtown with a mix of eateries and local and national retailers that offers an inviting and safe place for individuals and families to shop, see a movie, bump into friends and neighbors, and feel part of our community. Shop Eugene supports Eugene’s incredible array of locally owned businesses such as the members of Unique Eugene and Downtown Eugene Incorporated. We wish to see anchor stores in downtown Eugene such as Crate & Barrel, Restoration Hardware, and Nordstrom that will increase the number of local and regional visitors to downtown and help ensure the success of our unique locally owned stores. We support building on the successes of 5th Street Public Market and Oakway Center and envision Eugene joining cities like Portland and Seattle by becoming a regional Shopping destination.

We support a larger, more comprehensive development plan that will help tie both ends of Broadway together and realize our tax dollars may be needed to help make this happen. We are thousands of people who want to shop in Eugene, help create new jobs, and restore downtown to a vital economic engine.

KWG Proposal (covering 3% of downtown)

Redevelop the entire block bounded by Charnelton, Broadway, 10th and Olive, the two half blocks facing Broadway between Olive and Willamette and the properties on Olive at the northwest corner of Broadway to
create an intense “West End” retail/entertainment district with a multiplex theatre, boutique hotel, over 400 housing units and 200,000 feet of retail along Broadway between Charnelton and Willamette. KWG intends to remake West Broadway into a dynamic 24 hour community with restaurants, a multi-screen movie venue, night clubs, a mix of national and local retailers, a large grocer, a high-end hotel, and a dense mix of rental and for sale housing. In essence, these two blocks of Broadway would be recast into downtown Eugene’s entertainment hot spot. The proximity of the proposed entertainment cen ter to the Hult Center, and
other cultural venues in the adjacent blocks creates the opportunity for tremendous energy in the Redevelopment Area. The adjacent Eugene Transit Center and the new EmX rapid transit system provides a convenient link to the West End entertainment hub from all over the Eugene/Springfield metro area.

More detailed information is available at www.eugene-or.gov. Go to Planning, Downtown Planning.

Popularity: 14% [?]

Here’s a nice, newish, starter home in the Ferry Street neighborhood. This part of Eugene is very “family-friendly” and close to all shopping (Oakway Mall, VRC, Delta, Costco “village”)

What’s also nice is that the color scheme is good enough to leave as-is. The less work you need to do when you move in, the better! The post doesn’t say anything about the yard so I’m guessing that it’s .17 acres or less.

Popularity: 15% [?]

In a couple of posts I have talked about Eugene Hippies. About how radicals in Eugene often control the development debate centering around how to rebuild downtown.

Since I like to garden, ride a bike, trail run, eat organic vegetables, and recycle, I thought it would be appropriate to clarify what “Hippy” actually means in Eugene. Especially for people planning to relocate.

Basically, it means nothing. It’s more of a spectrum of hippyness vs. a black and white world of hippies and suits duking it out. Those metaphors are better suited to The Simpsons than to real life. Or maybe to Springfield.

So let me point out how Eugene is unique, different, and just a little more fun than most cities with 170K people:

• Eugene Hippies sell joke books. Good or bad jokes, it doesn’t matter because they’ve already broken the ice.
• Eugene Hippies make Saturday market a REAL old fashioned market.
• Eugene Hippies prevent homogeneity. They make minorities feel comfortable in a State with so few minorities.
• Eugene Hippies aren’t so attached to material competition or gains as the general public. Their value system tries to put human beings before economic interests.

Now that the days of Anarchists in the street are over, Eugene has brighter days ahead. Yes, there are more street urchins passing drugs around downtown than you will find in most cities of this size. Yes, debate and decisions about downtown can be hijacked by current tenants downtown, some of which only add ’smoke’ to the debate. Ok, that’s life. Difficult people are everywhere.

It just so happens that our true “Hippies” in Eugene, or left of left spectrum, the Eugene political power brokers, side with difficult people. Very difficult people.

So here’s what happened. A city of abnormally tolerant and open-minded people became critics of “Hippy” political domination when the eco-terrorists and anarchists decided in the late 90s that a lot of hardworking people in this town just don’t care what happens to Eugene. Or to Downtown.

Many hippies sided with the anarchists..a huge mistake. Tree-climbing w/poop-bag drops, riots, and general political and social mayhem brought a lot of ridiculousness to downtown policy and politics. This tipped the political scale in favor of development away from downtown. Many of those developments becoming very successful.

So as the City of Eugene attempts to put together a plan for downtown Eugene, they should consider how we got here in the first place and how to avoid getting here again.

Popularity: 10% [?]