MY GREEN BLOG

Well here are a couple ideas for ya..

 - Check out the movie Food, Inc. Opening Friday night at the Egyptian Theater downtown. Food, Inc. breaks down the American food industry to the core... let's put it this way... there's more going on than you probably want to know but SHOULD know. Check out more about the movie HERE. 

 - Feeling like getting out and doing something good for Mother Nature? Then join other like minded folks at Seward Park on Saturday anytime between 10 AM and 10 PM for their forest restoration work. Read all about it and other events in the area at www.greenseattle.org.

Till next time,

Jeff

Well folks rates have cooled their dramatic increases and actually gone down 2 days in a row. Rates are still very low but we expect them to continue to rise as the summer goes on. I predict there will be one more drop of rates to below 5% by September... after that, we will never see them again.

There has also been lots of favorable local news.... rates are great, pending home sales are at a 2 year high, and this article written today in the Seattle Times shows that Green certified homes ACTUALLY appreciated in value over the last 2 years. You can read the full article HERE.

The writing is on the wall, buy Built Green certified homes and buy now. What are you waiting for? The bottom? It is a proven fact that the bottom can only be defined once we are on our way back up. The only thing I can say is if we haven't already hit it we are close. Get out there if you've been waiting.

Till next time,

Jeff

No one knows....

Here is the daily commentary from Larry Baer and his Market Alert website. You can join Market Alert for 15 days free at www.mktalert.net. I will definately be subscribing after my free trial is over. The information they provide is INVALUABLE!!!!

Commentary: So which is it – are rates rising because the economic recovery is gaining noticeable traction or do rising rates mean the global investment community is worried about the deterioration in the creditworthiness of the U.S. as a debtor nation?

The Fed is not sure if one of these two dynamics is at play -- or if some other factor is creating all the volatility in the credit markets.

The idea that a major shift in investor sentiment has occurred regarding the budding economic recovery -- is an extremely weak one. It is true many economic measures have turned higher – but these improvements still leave many macro-economic measures only fractionally above all-time record lows recorded within the last six months. The vast majority of macro-economic indexes remain well below values normally associated with expansion.

The argument that the global investment community is loosing their appetite for dollar-denominated assets is weak as well. Data shows international demand for American financial assets is as high as ever, even as the value of the dollar slides and the U.S. deficit expands. Data compiled by Bloomberg show the Federal Reserve’s holdings of Treasuries on behalf of central banks and institutions from China to Norway rose by $68.8 billion, or 3.3% in May, the third most on record. The Treasury Department said bidding from foreigners was above average at last week’s $101 billion three-part note auction. To lay last week’s major swoon in the debt markets at the feet of massive incoming government supply misses a key point, the $2 trillion dollar supply inbound into the credit markets from Uncle Sam has been public knowledge for months, the likelihood that market participants just woke up to that fact last Wednesday is beyond ludicrous.

There are all kinds of suppositions floating among market participants regarding the cause(s) behind the swoon in the credit markets. There are an even larger number of theories focused on what the Fed should do to stem the crash and to push borrowing rates back to notably lower levels. Many are suggesting the Fed needs to immediately expand their funding authorization for the direct purchase of Treasury debt obligations from its present level of $300 billion -- to $1 trillion dollars or more. Others argue the Fed simply needs to make it abundantly clear to market participants that the central bank will hold their mortgage-backed security portfolio to maturity – reducing any threat to other mortgage investors that the government will become an aggressive seller of mortgage-backed securities somewhere down the road. Proponents of this argument believe that if this particular threat is eliminated -- one of the major root causes behind last week’s crash in the mortgage market will be greatly reduced.

I have no idea what the “right answer” is – and I think it is a very safe bet to suggest the Fed is doing a lot of collective head scratching right now as well. Central bankers will not want to appear as though they are reacting to every market swing by doing something instantly-- for fear of losing creditability in the global investment community. If the capital for significant expansion of their direct purchase programs is going to be authorized -- and/or if they are going to make a dedicated commitment to hold their mortgage portfolio to maturity– and/or if they are going to do something not yet on investors radar screens – it won’t likely happen in a breathless rush. The next regularly scheduled Federal Open Market Committee meeting is set for June 23 – 24^th. At least until then, like it or not, volatility levels in the mortgage market will almost certainly remain inordinately high.

Hopefully when I blog next... rates will have settled down. As for now it's exciting times.

Till Next Time,

Jeff

On May 1st a new regulation came into effect on appraisals used for conventional mortgages (those purchased by Freddie Mac or Fannie Mae and < 417K). The new guideline states that appraisals need to be ordered via a 3rd party Appraisal Management Company (AMC). Having come from a company where this was the norm (as was low appraisals, upset borrowers, and poorly paid appraisers) I was content with the fact. But now I am starting to really see how poor this guideline is in practice across the industry. See the following:

A. Appraisers now have no contact with Loan Originators. Sounds good on the face but believe it or not, there are responsible and ethical appraisers and loan originators out there. Appraisal conditions need to be met and running them thru a 3rd party can be exhausting. Things get lost in translation and time is wasted.

B. Speaking of time. Prior to may 1st, I could get an appraisal back within 5 days. Satisfying even the strictest lenders submission policy. Now appraisals are taking 10+ days to even get scheduled. Who knows when the actual report will come in. This factor makes 30 days locks very interesting. Should loans really take longer than 30 days?? NO.

C. The Cost is totally off. For the past 3 to 4 years appraisals have been $450. Now the AMC determines what to charge... and don't think the appraiser get's that full amount. Appraiser's are now beholden to what the AMC determines this appraiser should be paid. I mean the AMC has to make a profit right???? RIGHT???

Though I think more problems will arise. These are the main ones effecting the consumer and I thought you should know. So make sure you schedule those appraisals fast. I have linked an article on the issue from the Seattle Times HERE if you'd like to read more.

Till Next Time,

Jeff

PS. If you agree with this rule being bad for consumers... please SIGN the PETITION at www.hvccpetition.com.

I thought I might be a good time to profile a few gadget’s that are out on the market that will help you make your lives a little greener.

Apple recently released its new Mac Book which boasts a battery life which is 3 times my current notebook. I can tell you that I think about that when my computer is about to die and I’m desperately trying to find an outlet in the airport. But what about its energy efficiency??? Apple boasts that their new Mac Book only uses ¼ of the power of a single light bulb. Someone had to test this and sure enough Smart Money Magazine did. Their results concluded that it used about half the energy of a light bulb. They were running a DVD but I won’t get on Apple’s case for this. Half the energy of a lightbulb??? That’s pretty good in my book. Smart Money Magazine did report that the new Mac uses 25% to 55% less energy than four comparable laptops. Way to go Apple!!!!

With that in mind I wondered how much my actual computer used (amongst other appliances) and found another gadget called the Kill a Watt. All you do is plug in your appliance or anything into it and it tells you how much energy it uses. This would be a great help in finding out which items in your home or office suck the most energy. Of course… don’t just use the info it provides, do something with it. Search Amazon for the Kill a Watt and you’ll be on your way.

The final product I found is not really a gadget but we LOVE it here at Go Green Mortgage. It’s called GreenPrint and it basically cuts out banner ads and those blank pages that sometimes print at the end of a print spool. It also keep s track of what you’ve saved. Currently GreenPrint has saved over 5 Million sheets of paper, over 3.5 Million pounds of carbon emissions and 600 trees. The best part is it’s free for PC users (sorry Mac fans, it’ll cost you 29 bucks). You can get GreenPrint at www.printgreener.com.

Till next time,

Jeff

Go Green recently had our first training session with Aaron Adelstein from Built Green. We wanted to learn more about their organization and where their focus was heading in this recession. Built Green is a non-profit associated with the Master Builders Association of King and Snohomish Counties. They help to designate standards for green building within the 2 counties as well as around the state of Washington. They certify residential projects on a 5 star scale based on their checklist. You can learn more about Built Green at www.builtgreen.net.

One of the main focuses of Built Green over the next 6 months is certifying remodeling projects. This is great info for our staff at Go Green Mortgage because that is where we want to help borrower’s the most. In most mortgage transactions there are monies leftover after the closing. Typical rule of thumb is there can be no more than 2% or $2,000 (whichever is less) in cash back to borrowers on non-cash out transactions. This additional cash presents a great opportunity for borrower’s to make Green upgrades to their homes with this extra money.

If you are anything like me… then you realize that going green can be expensive. This is why I have adopted a 1 project every 6 months to a year policy. We at Go Green believe that every little bit helps, and with this method, every person can do their part and non break the bank. Please feel free to give us a call to learn where to best spend that $2,000 for your home in a Green upgrade. Maybe it’s new appliances… maybe a new water heater… maybe insulation for your attic.

You may be like me as well in the fact that you have no interest in selling your home in this market. So what better time to start making those little upgrades to differentiate your home once the market turns?? During our training, Aaron mentioned that studies are now showing that “Green” or “Greener” homes are selling for more per square foot (especially on the east side), are more resistant to depreciating changes in the market, and are being preferred by buyers over similar homes that do not have green upgrades. That’s great news for everyone!!!!

Keep all these things in mind over the next year. Look around your home and decide on your next project. Keep it simple… a rainwater collection system costs under $100 and a little manual labor to install. You’ll also be doing your part for economic recovery by investing in sustainable products, a key to recovery and our future American industry.

Till Next Time,

Jeff

I’ve mentioned green eating a couple times but never devoted a whole blog to it so I decided (with the help from this month’s Bon Appetit) to take this week’s blog down that path.

We’ve definitely talked about buying local but have you ever heard of the 100 mile rule? Basically, you only eat food grown or produced within 100 miles of their homes. They are also known as Localvores. You can calculate your map and get started by going to 100milediet.org. If there are some farms within your radius and you want to visit them… DO! And while you’re there, ask them some simple questions. Is your farm organic? If not, do you use organic practices such as using non-synthetic pestisides? If they answer yes then you’ve found a Green farmer and a good person to buy from.

Another thing you could do is brew your own coffee. This was a very hard pill for me to swallow myself, but the savings alone are worth it. Go out and buy a French press, you can get one at Target for 15 bucks and find some fair-trade organic coffee (try buying your coffee from the Seattle-East Timor Relief Association, SETRA, at timorrelief.org/how.htm). Give it a few days and you might find you make better coffee than the barista down the street.

One final tip is one that I found most useful in this technological world… FishPhone. FishPhone is a service provided by the conservation group Blue Ocean Institute. Basically, what you do is text 30644 and enter FISH, followed by the name of the fish you want to buy. Seconds later they will response telling you whether that fish is good for you and the earth. Pretty cool.

I have to credit Bon Appetit magazine for this month’s issue with these and SO MANY other great eating green tips. These were just a few of the ones that jumped out at me that I’m going to look into, already do, or start doing today.

Till Next Time,

Jeff

Do you remember the good ‘ol days when you’d use to go into a bank and sit down with their representative to discuss your needs for a loan. You may have banked there for many years and they didn’t need a credit score to determine whether to lend you money or not. Well, maybe you don’t remember these days but they did exist at one time. Are they about to be coming back?

With the collapse of major financial institutions across the nation many mid-level banks and credit unions are gaining market share. California Community Bank increased its loan growth by 24% in the 3^rd quarter and many of its peers in the Bay Area are reporting the same thing. The main reason for this is that most of the middle level size banks did not get involved in the securitizing of subprime loans thus they were not on the hook when those loans then went bad. So now they are in a better position to lend money collectively than the larger banks.

So what does this have to do with going green? Well for one it’s about buying local. Banking with a local credit union or local bank or transacting with local merchants in general helps our local economy ten-fold. It keeps the profits from these transactions returned back into the local economy. This helps to support your neighbor, which once trickled down will support you a lot faster than larger national organizations. Buying local is sustainable, which is a key to being green.

So next time you need some help with your banking or financial needs. Think about checking out your local bank or loan officer, though we are not back to the times where just a person’s word and good reputation are enough to lend money, they may care a little bit more and have a lot more vested interest in your success, and be able to do more for you than their larger competitors.

Till Next Time,

Jeff

I was just thinking last week how I missed the snow covered midwest. What I forgot about was the bitter cold temps. Well something blew into the Pacific Northwest this weekend and it left us with a whopping 3 inches (which debilitates us) of snow and 7 days of subfreezing weather. Now my driveway and walkway are an accident waiting to happen.

So what is a green person to do when they don’t want to use salt?

One alternative to salt is a product called Ice Melt (clever) made by Earth Friendly Products. It is safe for pets and vegetation and works down to -13. That’s pretty good.

Another alternative that you can order is Bare Ground. They make both a liquid preventative deicer and a coated salt that is 30% to 40% less corrosive than Rock Salt. Both are much less harmful for the environment.

Unfortunately you cannot get these products locally and have to order them from via the internet. I suggest using this as your prompt to order some now. For those of us in the PacNW, one bottle of this stuff will last for years.

In the end, the best short term solution would be sand. It’s not a favorite but it will reduce the slips and increase traction. Just make sure visitors wipe their paws at the door.

Till Next Time,

Jeff

I was not aware of the mass economy associated with recycling but as I read an article from the Associated Press yesterday it began to make sense. Basically the price for recycled items has dropped almost 92% for some materials. For instance a ton of cardboard in September of this year was going for $135…. Today it’s selling for just $35. Plastic bottles have fallen from 25 cents/pound to 2 cents/pound.

All of this is affecting quite a few municipalities across the country and the industries, like shipping, associated with them. For instance, the City of Seattle is considering having to pay companies to take materials that just last year earned the city millions in revenue.

So what is happening and why so fast??? Industries associated with these materials are seeing huge drops in their sales causing them to cut back production, thus their need for these materials have dropped. Since the demand is so low… something’s got to give, and the prices dropped. Now contracts drawn up in the height of the market are obsolete and can’t be met.

Things are getting bad enough in some areas that recycling companies are limiting the materials they are willing to take. Thankfully we seem to be OK here in Seattle and some recyclers are discussing buying warehouse space to store items till the market returns, which folks are hoping it does by the spring. If not we all may need start storing this stuff in our garages as well. If this does happen expect options to be out there other than sending it to the dump. I’ll keep my eye on this so if this does happen near you hopefully we can find your recycling answer.

Till Next Time,

Jeff