{"id":26320,"date":"2014-09-19T22:16:09","date_gmt":"2014-09-20T03:16:09","guid":{"rendered":"http:\/\/prefblog.com\/?p=26320"},"modified":"2014-09-19T22:16:09","modified_gmt":"2014-09-20T03:16:09","slug":"september-19-2014","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=26320","title":{"rendered":"September 19, 2014"},"content":{"rendered":"

Interesting to see that having a down-payment for a house isn’t good enough<\/a> any more:<\/p>\n

The Bank of Mom and Dad is playing a growing role as lender of last resort for a housing recovery struggling to provide more traction for the U.S. economy.<\/p>\n

Last year, 27 percent of those purchasing a home for the first time received a cash gift from relatives or friends to come up with a down payment, according to data from the National Association of Realtors. That\u2019s up from 24 percent in 2012 and matches the highest share since the group began keeping records in 2009.<\/p>\n

Those numbers will probably keep growing this year as younger Americans remain constrained by student debt, tough entry into the job market and stricter mortgage-lending rules that require more cash up front. At the same time, rising stock and property values give their baby boomer parents the ability to assist those wanting to lock in near record-low borrowing costs.
…<\/b>
The increase in such cash gifts also has lenders on guard against unstable sources of down payment funds.<\/p>\n

\u201cThe regulatory agencies are very, very specific about the paper trail requirements,\u201d said Staci Titsworth, a regional loan officer in Pittsburgh who works in the mortgage division of PNC Financial Services Group Inc. \u201cIt truly needs to be a gift with no expectation to repay, because once expectation to repay comes into the equation, now you\u2019ve got borrowed funds for down payment, which is unacceptable.\u201d<\/p>\n

PNC, as with other lenders such as Regions Financial Corp. and BB&T Corp., requires that the gift be from a relative by blood or marriage, with few exceptions. A \u201cgift letter\u201d with the mortgage application typically must include the amount of the gift, date the funds were transferred, donor\u2019s basic identification and relationship to the buyer, and a statement that no repayment is expected, according to representatives of the three banks.<\/p>\n

Financial institutions are careful about determining the source of funds because, while mortgages secured with the help of gifts from family are about as sound as those without any help, gifts linked to the seller were found to have increased default rates during the housing crisis, according to data from the Federal Housing Administration. Gifts from the seller are now banned by the agency.<\/p><\/blockquote>\n

It was a mixed day for the Canadian preferred share market, with PerpetualDiscounts down 11bp, FixedResets off 2bp and DeemedRetractibles gaining 4bp. Volatility was muted. Volume was a little below average.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0415 %<\/td>\n2,650.7<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.17 %<\/td>\n3.43 %<\/td>\n24,419<\/td>\n18.50<\/td>\n1<\/td>\n-0.0877 %<\/td>\n4,160.2<\/td>\n<\/tr>\n
Floater<\/td>\n2.91 %<\/td>\n3.04 %<\/td>\n53,403<\/td>\n19.62<\/td>\n4<\/td>\n-0.0415 %<\/td>\n2,741.0<\/td>\n<\/tr>\n
OpRet<\/td>\n4.05 %<\/td>\n1.65 %<\/td>\n91,511<\/td>\n0.08<\/td>\n1<\/td>\n-0.0395 %<\/td>\n2,726.0<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.30 %<\/td>\n3.80 %<\/td>\n110,954<\/td>\n3.91<\/td>\n5<\/td>\n-0.1009 %<\/td>\n3,147.0<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0395 %<\/td>\n2,492.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.47 %<\/td>\n2.48 %<\/td>\n70,374<\/td>\n0.09<\/td>\n20<\/td>\n-0.0766 %<\/td>\n2,435.9<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.27 %<\/td>\n5.18 %<\/td>\n101,303<\/td>\n15.15<\/td>\n16<\/td>\n-0.1053 %<\/td>\n2,588.5<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.24 %<\/td>\n3.79 %<\/td>\n187,250<\/td>\n8.49<\/td>\n74<\/td>\n-0.0203 %<\/td>\n2,556.5<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.00 %<\/td>\n1.95 %<\/td>\n110,346<\/td>\n0.28<\/td>\n42<\/td>\n0.0419 %<\/td>\n2,563.5<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.61 %<\/td>\n-0.95 %<\/td>\n75,689<\/td>\n0.08<\/td>\n6<\/td>\n0.0326 %<\/td>\n2,539.8<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
BAM.PF.B<\/td>\nFixedReset<\/td>\n-1.87 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-09-19
\nMaturity Price : 23.07
\nEvaluated at bid price : 24.63
\nBid-YTW : 4.26 %<\/td>\n<\/tr>\n
BAM.PR.X<\/td>\nFixedReset<\/td>\n1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-09-19
\nMaturity Price : 21.81
\nEvaluated at bid price : 22.06
\nBid-YTW : 4.13 %<\/td>\n<\/tr>\n
TRP.PR.B<\/td>\nFixedReset<\/td>\n1.22 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-09-19
\nMaturity Price : 19.96
\nEvaluated at bid price : 19.96
\nBid-YTW : 3.77 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
FTS.PR.M<\/td>\nFixedReset<\/td>\n1,507,011<\/td>\nNew issue settled today<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-09-19
\nMaturity Price : 23.18
\nEvaluated at bid price : 25.10
\nBid-YTW : 4.02 %<\/td>\n<\/tr>\n
TRP.PR.E<\/td>\nFixedReset<\/td>\n375,056<\/td>\nRBC crossed 50,000 at 25.39; TD crossed 300,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-09-19
\nMaturity Price : 23.27
\nEvaluated at bid price : 25.35
\nBid-YTW : 3.94 %<\/td>\n<\/tr>\n
TD.PR.Q<\/td>\nDeemed-Retractible<\/td>\n134,350<\/td>\nScotia crossed 40,000 at 26.27; TD crossed blocks of 40,000 and 48,400 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-10-19
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.20
\nBid-YTW : -6.57 %<\/td>\n<\/tr>\n
BAM.PR.P<\/td>\nFixedReset<\/td>\n108,512<\/td>\nCalled for redemption September 30<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-10-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.98
\nBid-YTW : 5.91 %<\/td>\n<\/tr>\n
ENB.PR.T<\/td>\nFixedReset<\/td>\n82,843<\/td>\nTD crossed 78,000 at 24.03.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-09-19
\nMaturity Price : 22.76
\nEvaluated at bid price : 23.92
\nBid-YTW : 4.29 %<\/td>\n<\/tr>\n
HSB.PR.C<\/td>\nDeemed-Retractible<\/td>\n68,540<\/td>\nTD crossed 62,700 at 25.33.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-10-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.25
\nBid-YTW : -8.70 %<\/td>\n<\/tr>\n
There were 28 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
BAM.PF.B<\/td>\nFixedReset<\/td>\nQuote: 24.63 – 25.00
\nSpot Rate : 0.3700
\nAverage : 0.2138<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-09-19
\nMaturity Price : 23.07
\nEvaluated at bid price : 24.63
\nBid-YTW : 4.26 %<\/td>\n<\/tr>\n

PWF.PR.O<\/td>\nPerpetual-Premium<\/td>\nQuote: 26.11 – 26.40
\nSpot Rate : 0.2900
\nAverage : 0.2076<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-10-31
\nMaturity Price : 25.25
\nEvaluated at bid price : 26.11
\nBid-YTW : 4.85 %<\/td>\n<\/tr>\n

ELF.PR.G<\/td>\nPerpetual-Discount<\/td>\nQuote: 22.13 – 22.47
\nSpot Rate : 0.3400
\nAverage : 0.2581<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-09-19
\nMaturity Price : 21.79
\nEvaluated at bid price : 22.13
\nBid-YTW : 5.44 %<\/td>\n<\/tr>\n

W.PR.H<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.10 – 25.45
\nSpot Rate : 0.3500
\nAverage : 0.2757<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-09-19
\nMaturity Price : 24.88
\nEvaluated at bid price : 25.10
\nBid-YTW : 5.57 %<\/td>\n<\/tr>\n

RY.PR.Z<\/td>\nFixedReset<\/td>\nQuote: 25.30 – 25.55
\nSpot Rate : 0.2500
\nAverage : 0.1758<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-09-19
\nMaturity Price : 23.28
\nEvaluated at bid price : 25.30
\nBid-YTW : 3.76 %<\/td>\n<\/tr>\n

CU.PR.E<\/td>\nPerpetual-Discount<\/td>\nQuote: 24.23 – 24.43
\nSpot Rate : 0.2000
\nAverage : 0.1346<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-09-19
\nMaturity Price : 23.84
\nEvaluated at bid price : 24.23
\nBid-YTW : 5.08 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Interesting to see that having a down-payment for a house isn’t good enough any more: The Bank of Mom and Dad is playing a growing role as lender of last resort for a housing recovery …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-26320","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/26320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26320"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/26320\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}