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The Next Wave: Option Adjustable Rate Mortgages Poised to Reset
Anthea Raymond
Steve Ward
August 29th, 2009

KVCR reporter Anthea Raymond speaks with local resident Al Rosales, a homeowner who is worried about his forthcoming option-ARM reset date. Option ARMs are those loans offered in abundance during the housing bubble that allowed borrowers to select one of four payment options, the equivalent of a 30 year fixed rate, the equivalent of a 15 year fixed rate, a payment that covers only the interest, or a minimum payment that is less than the interest. The latter two payments are offered for a limited time, and when the time expires the option “reset” causing the payments to increase significantly. Many borrowers can neither afford the higher payments nor refinance their upside-down mortgages.

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Commercial Property Foreclosures Impact the Region
Anthea Raymond
Ross De Vol
Duncan Lively
August 21th, 2009

Ross de Vol, Director of Regional Economics for the Milken Institute, a think tank in Santa Monica, talked about what a rise in COMMERCIAL foreclosures might mean for our region. He says this sector is the next shoe to drop.

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HOUSING & THE CALIFORNIA BUDGET CRISIS
Steve Ward
Anthea Raymond
July 31, 2009
Fontana City Mayor Mark Nuaimi and Dave Willmon of the League of California Cities discuss California’s fiscal problems and how the NEW STATE BUDGET might affect homeownership and housing, including how Inland Empire cities might be affected by the state’s plan to claim almost 2 billion dollars in local development funds.

The group Calculated Risk posted a thought-provoking chart showing how single family mortgage delinquency rates have largely tracked changes in the U.S. unemployment rate since 2005, which we’ve excerpted. From that chart, it would appear that foreclosure activity in the U.S. is pretty closely tracking changes in the unemployment rate. Whenever we see that kind of apparently close correlation, we go the extra mile and try to map out the relationship that would appear to exist between the two factors. We’ve presented our chart showing the correlation between the U.S. unemployment rate and the U.S. single-family mortgage 90-day delinquency rate to the left.

Running the numbers for an unemployment rate of 10%, we find that we might expect the single-family mortgage delinquency rate to increase to a level around 2.7% of all mortgages, based upon the correlation we observe in the data that appears to have existed since 2004.

Obtained from:
http://politicalcalculations.blogspot.com/2009/06/new-correlation-between-unemployment.html

We are creating NPR radio segments on the crisis, as well as various short television segments to keep our viewers updated and informed. We are also going to host regional town hall meetings where experts will field audience questions, and these will be broadcast on KVCR.

We also realize people want to ask their specific questions. KVCR is responding with a special series of It’s Your Call programs. Over the next ten weeks, you’ll be able to listen to advice and call in and ask our experts questions that can help you navigate your own housing problems. We’ll examine everything from loan renegotiations to dealing with a pending foreclosure; from avoiding refinancing scams to avoiding being thrown out of a rental that is being repossessed, and we’ll explain the new Federal programs designed to help. Join us. Tune in and take action. Remember, It’s Your Call. Airs: Fridays at 7pm on KVCR.