Foreclosure and REO investors have begun taking a closer look at the Obama administration’s recent loosening of rules on property "flips"… . And they’re seeing some potential complications.

McLean, VA — Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS ) in which the 30-year fixed-rate mortgage (FRM) averaged 4.98 percent with an average 0.6 point for the week ending January 28, 2010, down slightly from last week when it averaged 4.99 percent. Last year at this time, the 30-year FRM averaged 5.10 percent.

By the time you read this sentence of my column, another baby boomer will have turned 50 years old–it happens every seven seconds. The Baby Boomer generation makes up about 28 percent of the population and has some interesting statistics. According to BabyBoomerMagazine.com, this group has greater wealth than any other, controls 70 percent of the total net worth of American households, and accounts for 40 percent of total consumer demand.

One of the most inexpensive ways to “remodel” a room is by painting. A change in wall color is an easy way to redefine any room in your home. And if you’re interested in making your paint choice a “green” selection, here’s some information regarding eco-friendly paint.

Most major paint companies have done their research and come up a number of paint offerings that are low in volatile organic compounds (VOCs). These compounds have been linked to respiratory and nervous system disorders and have been shown to contribute to smog. Keeping VOCs at a zero to low level can have both health and environmental advantages.

There are several different types of eco-friendly paints and manufacturers that produce them:

• Sherwin-Williams produces a zero-VOC interior paint called Harmony. Available as a top coat or primer, its cost begins at $40 per gallon.
• Benjamin Moore produces a lower-odor, durable paint in its Aura line at $60 a gallon. Its Natura paint is VOC-free and runs about $50 a gallon.
• American Pride, also known as Mythic Paint, is latex-based, low-odor and has zero VOCs . However, its semi-gloss paint is acrylic. It offers more than 1,200 colors.
• AFM Safecoat paint is also VOC and odor-free. It’s been used in schools and hospitals for many years.
• BioShield and Green Planet Paints each sell a clay-based paint. BioShield clay paints have a matte finish and can be sealed and glossed with a wax finish. They are not recommended for use in the kitchen or bathroom.
• Amicus Green offers a milk-based paint called Real Milk Paint. This product is made with curdled milk, lime and earth pigment. It’s best used on cabinets and some wood surfaces on furniture. BioShield also has a milk paint that comes in powder form to be mixed with water.

If you wish to take one step farther into the eco-friendly experience of painting, Purdy produces a line of painting tools called EcoPro. Among its products are brushes with recycled nylon bristles; a biodegradable, disposable pulp tray and recycled roller covers.

For further information about remodeling with eco-friendly paint, please visit the Simple Earth Media website.

TALK BACK: Have you ever tried an eco-friendly paint? Are there any that were not mentioned that you’d like to recommend? Post your comments below.

Posted by Sharon Walker

A new survey reveals that savvy consumers cashing in on the new and improved homebuyer tax credit are helping fuel economic recovery.

Every homeowner association has various methods available for establishing acceptable standards. As a benchmark, those standards must stand the test of federal law: For example, the board cannot enact a rule that flies in the face of the Fair Housing Act.

With every New Year comes the promise of a new start, of new beginnings. For builders and those in the construction and development industry, many couldn’t wait to say goodbye to 2009. With lending frozen on new development and customers looking to purchase or make improvements to existing homes, and development costs surging, 2009, and now 2010 is the year to look into cost cutting measures to survive and thrive later this year and on into the future of this second decade of the 21st century. One way to do just that is to be more accurate and save time when developing estimates. BuilderBooks, the publishing arm of the National Association of Home Builders, recently released a new resource for builders that will help them do just that. Estimating with Microsoft Excel® Third Edition, a book and companion CD by Jay Christofferson, takes readers through generating an estimating workbook in Microsoft Excel® 2007, step by step to save time and avoid costly errors.

Announced last week, FHA-backed mortgages will require higher insurance premiums, better credit scores and a reduction in seller concessions for those applying for an FHA home loan. These changes are hoped to do battle with the rise in delinquencies.

The new requirements are:

• An increase in the up-front Mortgage Insurance Premium from 1.75 percent to 2.25 percent. The premiums can be paid over the life of the loan. This change will take place in early spring.
• Applicants must have a minimum FICO credit score of 580 to qualify for a 3.5 percent downpayment. Borrowers with scores below 580 will need to come up with at least a 10 percent downpayment to get an FHA loan. This requirement will be implemented this summer.
• Allowable seller concessions (such as seller-paid closing costs) will be lowered from 6 percent to 3 percent. Not considered much of a change, it is what most banks will approve. It is expected that this revision will go into effect this summer.

FHA mortgage defaults have risen over this past year. It’s expected that the agency will continue to review and revamp its policies, which could result in further changes in policy.

TALK BACK: Do you agree with the new FHA policies? Post your comments below.

Posted by Sharon Walker

You might have seen the headlines last week about an unexpected drop in housing starts, and you might have thought: Uh-oh. That’s not the direction we ought to be headed in a rebounding economy.

An advertisement is like an iceberg: most of its substance is out of sight.