Readers Respond: A 20% down payment debate
The National Association of Home Builders is among the industry groups lining up against a planned 20% down payment rule for qualified residential mortgages. Here’s what we heard from readers.
"I believe a 20% down payment would end up making a much healthier housing industry in the long run."
— Tim Stine
"This will have a negative impact on absorbing the extra houses on the market from foreclosures. It would seem to me that a smaller down payment with better due diligence by the lender in verifying income and real credit history from willing buyers would be a better way to go."
— Ira Swartz
“I’m certain the NAHB would prefer 0% down payment — but we’ve been through that scenario and we are still trying to crawl out from under it! A 15% to 25% down payment is not unreasonable if you’re the one financing the balance of a mortgage.”
— Paul Siegel
"I think that if due diligence had been followed in the past and we hadn’t loaned money to people who didn’t even have jobs, then the housing market wouldn’t have crashed in the first place. By doing what we did, we over-inflated the value of homes by creating a false demand. Just check to ensure borrowers are in fact credit worthy."
— Vicki Worley
"Twenty percent is too much. Ten percent for well-qualified borrowers would be appropriate. For people with sketchy credit, 20% would be OK."
At this point anything done
At this point anything done drastic will have negative effects. Obviously we all need the housing market to heal and be strong. I also feel that first time home buyers need a way to start, and setting a 20% equity qualification will delay if not eliminate the opportunity for many to buy a home. I think diligent credit checks will do this, banks for years lent money on a person’s credit and ability to pay; it was only when Government placed emphasis on everyone owning a home that things went wrong. Not everyone is meant to own a home; it is truly and should be an example of a person’s responsible discipline. Rob Latham Tri-State Forest Products, Inc.
Bed Bath & Beyond sees strong growth
Bed Bath & Beyond reported net earnings of $283.5 million in the fourth quarter ended Feb. 26, up 25.4% from $226.0 million in the same quarter last year.
Comparable-store sales in the quarter increased 8.5%, as total sales increased 11.6% to $2.505 billion.
For the full year, the company reported net earnings of $791.3 million, up from $600.0 million a year ago. Net sales for fiscal 2010 were $8.759 billion, an increase of 11.9% from $7.829 billion in the prior fiscal year. Comparable-store sales for fiscal 2010 were up 7.8%.
As of Feb. 26, 2011, the Union, N.J.-based company had a total of 1,139 stores, including 982 Bed Bath & Beyond stores.
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RILA and CargoNet form alliance to fight cargo theft
The Retail Industry Leaders Association (RILA) and CargoNet have announced the establishment of an exclusive strategic alliance with the shared goal of combating the growing problem of cargo theft across the retail industry.
According to the 2010 United States Cargo Theft Report issued by CargoNet, reported incidences of cargo theft increased by 50% in 2010 compared with 2009. The FBI identifies cargo theft as a multi-billion dollar industry in the United States.
“Cargo theft has become a significant pain point for retailers,” said Lisa LaBruno, VP loss prevention and legal affairs at RILA. “Through this joint endeavor, we hope to stem the tide of cargo theft and maximize recoveries for retailers.”
Through CargoNet’s information-sharing network, theft incident details are passed on to statewide law enforcement systems and several non-law enforcement channels almost immediately after a theft is reported. The network ensures law enforcement can efficiently find critical information to help solve complex investigations, identify perpetrators and recover stolen product.
“Mitigating risk within the supply chain caused by cargo theft is a priority for CargoNet,” stated Maurizio Scrofani, president of CargoNet. “Our strategic alliance with RILA is key to ensuring we continue to focus on the needs of our supply-chain constituents within the shipper community.”
A division of Verisk’s ISO Crime Analytics, CargoNet helps prevent cargo theft and improve recovery rates through secure and controlled information sharing among theft victims, their business partners and law enforcement. CargoNet applies an integrated, layered approach that exploits the weakness of cargo thieves at multiple points and includes integrated databases, a theft alert system, task force and investigations support, a tractor/trailer theft deterrence program, the TruckStopWatch program, driver education and incentives, secondary-market monitoring and interdictions, crime trend analysis and loss control services, and training and education.
Headquartered in Arlington, Va., RILA is a trade association that includes more than 200 retailers, product manufacturers and service suppliers, which together operate more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.
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