VOL. 128 | NO. 126 | Friday, June 28, 2013
Pedcor Files Loan on Southwind Lakes Apartments
An affiliate of Carmel, Ind.-based Pedcor Investments has filed a $4.7 million loan on the second phase of Southwind Lakes Apartments at 8000 E. Shelby Drive in Southwind.
Pedcor Investments-2005-LXXIX LLC filed the multifamily deed of trust, assignment of leases and rents, and security agreement June 1 through P/R Mortgage & Investment Corp.
Phillip J. Stoffregen signed the trust deed as executive vice president of Pedcor Investments, as managing member of the borrowing entity. The Shelby County Assessor of Property lists the owner as Pedcor Investments 2005 LXXIV LP.
Built in 2007, the Class B, 87,748-square-foot multifamily property – which is adjacent to other phases of the sprawling Southwind Lakes complex – sits on 4.8 acres at the northeast corner of East Shelby Drive and Hacks Cross Road.
The assessor’s 2013 appraisal is $2.5 million.
Source: The Daily News Online & Chandler Reports
– Daily News staff
Magna Bank Honored as Top Bank for SBA Lending
Magna Bank has been named Community Bank of the Year by dollar value for its Small Business Administration lending.
It’s the third-straight year the bank has been recognized by the Tennessee SBA for its lending practices. Magna awarded a SBA loan volume of $13.2 million during fiscal year 2012, up $1 million from fiscal year 2011.
The dollar amount of SBA loans Magna awarded in 2012 was more than any other community bank in the state.
In addition to SBA lending, Magna also provides business banking services that include commercial banking, multi-unit lending and construction lending.
– Andy Meek
City of Memphis Inspection Stations Close
The city’s motor vehicle inspection stations close permanently Friday, June 28, at 3 p.m.
The administration of Memphis Mayor A C Wharton Jr. confirmed the closings Thursday, June 27, as workers at the stations prepare for either layoffs or to transfer to other city departments.
The stations are closing because last year the Memphis City Council voted to end all funding of the inspection services and the stations effective at the end of the current fiscal year. The fiscal year ends June 30.
Meanwhile, there has been no resolution to talks among the city, Shelby County government and the state of Tennessee on who will continue to do the emissions testing required by the federal Environmental Protection Agency as one of several options for meeting air quality standards.
Council members voted to end the funding because they contend it isn’t fair that Memphis vehicle owners are required to get the inspection and vehicle owners in the county outside the city are not.
The Friday closing is an early deadline for Memphis vehicle owners whose tags expire at the end of June.
But for those with July tags and beyond, Shelby County Clerk Wayne Mashburn will renew vehicle registrations without requiring the notice that the vehicle passed inspection.
– Bill Dries
30-Year Mortgage Rate Hits Two-Year High
The average U.S. rate on a 30-year fixed mortgage surged this week to 4.46 percent, the highest in two years.
The increase from a 3.93 percent average last week was the largest one-week jump in 26 years, according to a report Thursday from mortgage buyer Freddie Mac. And it shows the Federal Reserve’s hints that it might slow its bond purchases this year are already affecting consumers.
In the short run, a spike in rates could prompt more people to buy homes, giving the housing recovery an added boost. That’s because would-be buyers would want to lock in the rates before they rise further.
But if rates continue to climb, eventually some buyers might feel priced out. That could slow homes sales at a crucial time.
Interest rates have jumped after Fed Chairman Ben Bernanke said on June 19 that the Fed could slow its bond purchases later this year if the economy strengthens. Since Bernanke’s comments, the yield on the 10-year Treasury note has risen to a two-year high. Mortgage rates tend to track the yield on the Treasury note.
Freddie Mac also said the average on the 15-year mortgage rose to 3.50 percent from 3.04 percent last week. That’s the highest since August 2011.
Mortgage rates remain low by historical standards. Still, the impact on buyers’ wallets in just the past two months is striking.
A buyer who locked in a 3.35 percent rate in early May on a $200,000 mortgage will pay $881 a month, according to Bankrate.com. Another buyer who gets a 4.46 percent rate this week on a mortgage of the same amount will pay $1,008 a month.
The difference: $127 more a month, or $45,720 over the lifetime of the loan. The figures don’t include taxes, insurance or initial down payments.
– The Associated Press
US Consumer Spending Up 0.3 Percent in May
U.S. consumers spent more in May as their income rose, encouraging signs after a slow start to the year. But spending was weaker in April, February and January than previously estimated.
The Commerce Department said Thursday that consumer spending rose 0.3 percent last month, nearly erasing a similar decline in April. Income rose 0.5 percent.
At the same time, economists said the downward revisions to spending for three of the first four months of the year signal weaker growth in the April-June quarter, which ends this week.
Paul Dales, senior U.S. economist at Capital Economics, said he thinks growth has slowed in the second quarter at an annual rate of just 1.5 percent. That’s down from his previous forecast of a 2 percent rate. Economists at Barclays have cut their forecast from an annual rate of 1.8 percent to a sluggish rate of 1.4 percent.
Dales also noted that the inflation gauge the Fed watches most closely has dropped to a record low of 1.1 percent, well below the Fed’s 2 percent target. When inflation falls too low, the Fed normally keeps rates low to try to boost prices.
Economists are hopeful that growth will pick up in the second half of the year, and some recent data have been encouraging. Consumers, benefiting from low inflation, spent more at retail businesses in May, notably for cars, home improvements and sporting goods.
U.S. factories are fielding more orders. Higher home sales and prices are signaling a steady housing recovery. And employers added 175,000 jobs last month, in line with the average job growth over the past 12 months.
Steady job growth has lowered the unemployment rate to 7.6 percent, down from 10 percent in 2009. And this week the Conference Board said a better job market helped lift Americans’ confidence in the economy rose to the highest level in 5 1/2 years.
– The Associated Press
Fed Officials Seek to Calm Markets
Federal Reserve officials sought Thursday to calm investors by assuring them the Fed won’t start trimming its bond purchases until the economy has strengthened. They said any pullback in the Fed’s stimulus will hinge on the economy’s performance, not a calendar date.
The Fed is buying $85 billion a month in bonds to try to keep long-term interest rates low to spur borrowing and spending. Chairman Ben Bernanke jolted investors last week when he said the Fed will likely slow its bond buying this year if the economy continues to improve.
William Dudley, president of the Federal Reserve Bank of New York, said Thursday that if the economy proves weaker than the Fed forecasts, he expects the bond purchases to continue.
The Fed’s timetable for its bond purchases depends on its outlook for the job market and the economy, Dudley stressed at a news conference in New York.
Jerome Powell, a member of the Fed’s board in Washington, said investors appear to have incorrectly concluded that the Fed will taper its purchases soon.
A third Fed official, Dennis Lockhart, president of the Atlanta Fed bank, said Thursday that “the pace of purchases, the composition of purchases and the ultimate size of the Fed’s balance sheet still depend on how economic conditions evolve.”
– The Associated Press