Friday, April 8, 2011

Housing News Digest, April 8

HUD releases contingency plan for government shutdown
The Department of Housing Development released a contingency plan in case budget negotiations fail and the U.S. government is forced to shut down Friday night.

According to the plan, it would take roughly four hours for HUD to close its doors and discontinue unnecessary operations. However, emergency activities would continue. Functions funded under multi-year appropriations would carry on as well. Of the 9,700 HUD employees, 876 would remain.

Jobs, real estate key factors in recovery
Don Marostica, partner with Loveland Commercial LLC, touched on some of the negatives citing the current misery index that takes into account the jobless rate and inflation. Currently, the misery rate is 11.1 compared with 21.98 in 1980. Marostica said that when the misery index hits a certain point, people will make a change.

Ryan McMaken, spokesman for the Colorado Division of Housing, provided a report on the current state of jobs and housing. While foreclosures filings have dropped this year, McMaken noted, the state's unemployment rate has jumped above the nation, citing a negative new trend

International Monetary Fund Voices Concerns With U.S. Housing System
In an annual report that will be released next week, IMF says the origins of the global financial crisis can be found in the U.S. housing finance system. The agency says government participation in the U.S. housing market has been “pervasive” but has not yielded the expected benefits to prospective or existing homeowners.

Niketown's Denver run almost over
When Niketown Denver opened its doors in the Denver Pavilions in July 2009, Nike said it would be the last one it would build in the U.S. Now, it’s 12-year run in downtown is nearing the finish line. Today, Nike announced that the store, one of the original anchors in the Denver Pavilions along the 16th Street Mall, will close in May.

DaVita Deal of the Year
DaVita invested more than $90 million in a new, 15-story, 270,000-square-foot headquarters building under construction near Union Station in downtown Denver.

Mortgage Lenders lay off workers as refinance activity declines rapidly
A rebound in mortgage rates from last year's near-record low has reduced consumer demand for home loans and refinancings, leading Wells Fargo & Co. to join other industry stalwarts in laying off loan processors and related workers.