Show F2 BUSINESS The Salt Lake Tribune The Law's on Your Side If You Want To Own a Home Throughout most of history the concept of home ownership has been one of great importance shared by nearly all the people of the world Because of the value that individuals place on home ownership 1---there are many feder- al and state laws existing to support this RONALD FIELD concept — Laws and regula- 'wimp Ar ' ' I tions were created to 1 40protect your rights as 'I 4 -- ' 1' " i a borrower in your k t 0 4 c quest for home owner17-k' --19 I is important ' ship It ' - that 1 '''' you be aware of : w "1- 1- " 1'"' "'"' your rights The following are explanations in simple terms of some of the laws and regulations that protect your rights III EQUAL CREDIT OPPORTUNITY ACT Regulation B — This regulation was created so that all applicants would have credit available to them without regard to race color religion national origin sex marital status or age whether an applicant's income either all or part is derived from public assistance whether an applicant has exercised any right in good faith under the Consumer Credit Protection Act The regulation prohibits any acts by creditors that would discriminate on the basis of any of these factors FAIR CREDIT REPORTING ACT — The purpose of this act is to ensure that agencies use fair accurate and confidential reporting methods If your loan is denied due to your credit status the credit reporting agency must supply you upon request with the information upon which the denial was based REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) — This act is intended to ensure that US consumers are provided with greater and more timely information on the nature of the costs associated with getting a mortgage loan As a result of this act federal regulation requires that within three days of your initial loan application you receive a disclosure of estimated settlement costs on what is known as a "Good Faith Estimate" RESPA was also created to eliminate kickbacks and referral fees that might increase settlement costs TRUTH IN LENDING ACT Regulation Z — This act requires creditors to disclose information to consumers about the conditions terms and costs of a loan The regulation also ensures the right of a consumer to cancel some credit transactions involving a lien on the consumer's principal residence The intent of this act is to help you better understand loan transactions and to assist you in comparing loans offered by different lending institutions through the use of common terminology such as "annual percentage rate" (APR) and "finance charge" --1- -- - -- '- - 1 RATE PROGRAM POINTS DOWN Inflation Surveys Don't Reflect - P ORTGA CAPS INDEX Academy Mortgage 30-y- r 7-- yr Fix Balloon ARM 0 0 0 8750')0 7875 5250 :1 credit-worth- t '''"-"—- '' y credit-reportin- 10 101)0 DOD est rate on mortgages decreased to 8625 The interest rate for mortgages continues at 8125 and the rate for one year adjustable-rat- e All rates are quoted mortgages increased to 550 30-ye- 15-ye- ar Continued from 111 30-y- r 10-y- r 7-- Fix Fix Balloon 8500 8000 7750')0 500 10 Bank One r 30-y- 15-- yr Fix Fix ARM 8625 8125 0 0 57500 0 Colonial Mortgage r Fix 8750 r Fix 83750 30-y- r Jumbo 9125 26 10 ll 5 0 0 0 30-y- 15-y- 5 51)0 50 10 Countrywide Funding 30-y- r Fix 15-y- r Fix ARM 8375°0 8125 57501)0 10 500 10 0 0 0 216 Crossland Mortgage 30-y- r 15-y- r 5-- Fix Fix Balloon 8625 8125 5e0 10 0 76251)0 0 0 y th First Interstate Bank 30-y- r Fix 30-y- r Jumbo 8500 8875 15-y- r Fix 81251)0 5 0 0 0 10'0 10 Key Mortgage 30-y- r Fix 8625 30-y- r Jumbo 88750 Balloon 5-- 7625c10 Olympus Bank Fix r 87500 30-y- 10-y- r Fix FHANA 8125 7500 5 5 10 0 0 0 0 0 0 Vo 0 0 0 5 5 10 5 ox 5 15 Zions Mortgage Fix 15-y- r Fix ARM 30-y- r 86251)0 80001)0 5875')0 26 DOD information on The Utah Mortgage Pulse includes home loan rates charged by Salt Lake City area lenders The Information was accurate on Wednesday July 20 but is subject to change without notice Closing points: One point equals 1 percent of the loan amount Most lenders also require private mortgage insurance with downpayments of less than 20 percent Also most lenders charge loan processing fees up to $300 credit & appraisal fees up to $400 origination fees of 1 along with other closing costs Index Yield on 1 National Cost of Funds Offered Rate NCF yr llth D llth District Cost of Funds London InterBand Source: Mountain Express Mortgage (801) with zero points and a 1 268-320- a Utah mists are working to fill that void Kelly Matthews has devised the "Wasatch Front Index" which follows a format similar to the CPI Its advantage is that statistical samples are closer to home It's disadvantage is that it doesn't count nearly as many items as the national CPI so it's drawing similar conclusions from less information The most recent Wasatch Index released July 13 shows the cost of living in the four Wasatch Front counties increased 22 between December and June Even Matthews chief economist for Salt Lake First Security Corp questions Fill 0 origination fee Ronald Field of Park City is a licensed mortgage broker and former columnist for the Chicago Tribune Readers with financing questions can send their letters to Ronald Field PO Box 2060 Park City UT 84060 Vold: Some econo- City-base- d FROM MAY SINCE 1988 TO JUNE 1994 SINCE 1988 495 02 r2i77cYo 06 167 19 256 08 HEALTH CARE 301 07 543 03 FOOD AT HOME 253 09 253 -- 01 CLOTHING 117 23 170 -- FOOD AWAY 297 -- 12 208 01 UTILITIES - 92 00 237 00 11 7 -- 03 470 03 06 269 03 F-- 1 night-livel- 10 INCREASE FROM MAY INCREASE or) The Consumer Price Index published by the US Bureau of Labor Statistics each month is a good example Calculated from a standard "marketbasket" of 90000 goods and services surveyed monthly in 85 locations around the country the CPI may be authoritative but it's too general critics say One problem is that the CPI does not account for human behavior For example people tend to cut back or use cheaper substitutes when some prices get too steep Another problem is that the CPI measures changes over time not from place to place Rising coffee cigarette and liquor prices will make less of a dent in MorNemon Utah than in vada CPI surveyors try to make up for these shortcomings with surveys in 20 cities including Denver and Portland — but not Salt Lake City And they formulate a separate CPI for the western region which includes Utah and 12 other states But even this regional number does not shed much light on the Utah experience says University of Utah researcher Boyd L Fj eldsted For instance numbers representing California's busted real estate market dull the glow of Utah's lively market when numbers are blended "Unfortunately they don't produce an index for the state of Utah or any sub region of the state" he says 51 INCREASE INCREASE HOUSING 0 0 0 NATIONAL INDEX WASATCH INDEX fl American Residential g Based on the lenders surveyed this week the inter- ::2J:z±:og:o4A1r(qnpopijtz': Local Realities 101)0 1-4- 44 Sunday July 24 1994 TRANSPORTATON MISC 245 ALL CATEGORIES TO JUNE 1994 i 13 The Salt Lake Tribune For example ACCRA statistics for March 1994 put the cost of living in Logan at 1036 of the na- how much small numbers like these mean to most Utahns People generally expect prices to go up over time so they're not inclined to detect those increases — unless the jump is dramatic tional average and in St George at 102 Lower than the national average were Cedar City (934) Salt Lake CityOgden (957) and ProvoOrem (986) Matthews points out that people would be more likely to notice the increases measured from January to June 1993 when prices grew more than double the rate they did during the same period this year State budget planner Natalie Gochnour agrees that subtle CPI changes probably go unnoticed by most Utahns "If you ask any person on the street how they spend their money a lot of them do not have a clue" she says For Southern Utah University business professor Alan Hamlin the lack of a good measure is a source of distress He says Utalms are suffering more than the consumer statistics express His view is based on statistics that show Utah's wages are just 73 of the national average even though its costs are generally on par with those in other states "It means families hurt" he concludes Some experts believe it is more meaningful to compare Utah prices from city to city rather than over time The association also gives breakdowns -figure dollar- That makes it possible for example for a Utah newcomer to compare costs side-by-si- For instance while housing prices are higher than the national norm in Provo and lower than the norm in Salt Lake City the association's numbers show that it is still cheaper to rent a apartment in Provo — $515 a month — than in Salt Lake City — $584 a month And someone interested in a home would 1800 square-foo- t m pay $128700 in Provo and $111600 in Salt Lake City (He or she might also be chagrrinned to learn the Provo house cost $21400 less six months earlier and the Salt Lake City house $18400 less) Amusing as it may be to make such comparisons economists warn against treating the associations as gospel For instance there is no way to tell if survey-taker- s from one city to another are measuring exactly the same items they note Kenneth E Jensen a economist with the Utah Department of Employment Security points out that what may be obvious is not so simple to labor-mark- The American Chamber of Commerce Researchers Association (ACCRA) does that with its cost of living index The association checks prices every three months from around the county on food clothing and other household essentials Then it compares those figures against the national average et "I don't know that you can say there is a trend" says Jensen "There's nothing statistically conclusive in any of this" Plenty of Room at Top? Group Urges Boards to Toss Deadwood THE WASHINGTON bling about better corporate governance and a lot of chief executives see these kind of changes as a coming event" said Boris Yavitz commission chairman and dean emeritus of Columbia Business School Whitworth agrees "We are still flushing out the crowd in companies who want to do things their way or no way at all" he said "But more visionary types will welcome the guidance" POST WASHINGTON — The jovial golfing buddies of the chief executive the figureheads who add nothing but hot air the lifers who "More corporations are getting dead weight off their so it's not a sure thing anymore that you boards automatically get elected year after year if you are not disappear from corporate boards of the future according to a new report by experts on corporate governance "More corporations are getting dead weight off their boards so it's not a sure thing anymore that you automatically get elected year after year if you are not useful" said Jean Sisco chairman of National the Washington-baseAssociation of Corporate Directors Sisco said Tuesday that the association developed the report with hopes it will spur companies to transform the top of the corporate pyramid themselves without having it mandated by angry stockholders or finger shaking government agencies In recent years much attention has been focused on corporate JEAN SISCO National Association of Corporate Directors useful1' are elected without pause decade after decade — all are going to d 37-pa- governance resulting in such changes as better reporting on compensation and improved communications with shareholders Among the recommendations in the association's report are: a formal annual performance evaluation of top management by the board similar to those usually done for employees standardized criteria for selecting board members less involvement by the chief executive in the selection process so the board is more likely to be independent from manto agement and winnow out weak board members "We are now deeply in a phase of actual realizing of corporate w IRE iron-heade- d said Ralph accountability" Whitworth a shareholder advocate and president of Washington-based Whitworth & Associates "Our concrete set of recommendations will be just another nail in the coffin of the 'my company' attitude of running businesses like personal fiefdoms with rubber-stampin- g a o ifigFlIP-te di i Ir r 1r lit1--- IP Al' : DSHIELD! : That's rightfor a limited P time GLASS ACT will pay : your insurance deductible good-oldbo- y boards" Whitworth was one of 32 members of the commission that prepared the report The commission 3 shareholder groups and corporate boards institutional investors and governance experts "There is a continuing rum Glass A ict Division of the 1 533-884- 4 Quality Glass Group rk: tivatt0144:431110116111rirli'i intel ) 4865X & DX Color Notebooks beginning $25760" or at Built and Serviced by Burgoyne Computers MI1911 Member St PO starting $6440month P:: 420 MB Hard Drives - PVIP rTig $ 114! 4 IR 4 6'01100 41:112411PCM) 1St:TA:U0 itt ri err 0711141!10&Aji CM14f ilk:511t(firlialtl' 'f11(!rfll!114'TS110111tr4ii(i1 11(14 '' 41Ar ::44 LI Itt4ilii1141) 33 Prudential Securities ri Custom configurations available 1111togigtACTaimmibnipttant jTTi 414Eu 6 sss ' °1 Financing Available 0AC kf4511Y- - t41tyt tr4 imtlp - It'Ll It EDUCATION Apo60tolkom WHILE SUPPLIES LAST Bwg90 Computers Days Same as Cash available - Downtown Store Redwood Store 414 E 300 S I 4885 S Redwood UNIVERSITY OF UTAH 1104141w "24ootAt46-4—oh- $305 INSTALLED allr-raillteSsementarelisTIVIIIIIen 266-920- 0 531-210- 0 CONTINUING 4 ' t or $2220montht7 st 8289 Monitors 28 - 800-662-37- e99 SVGA Associate Vice or $ beginning at has joined our 111711 as an 88 Pd 11111111180MPUMERS intel 486 COMPUTERS ID ide Scott Steorts 801-534-00- 4 Ie AA ' 1 (lol':kwo:IT1-ortga444col- Salt Lake City UT 84111 t 7 The University of Utah is Proud to Announce We are pleased to announce that L L 1 LID tO MO Approved by all Insurance companies 1 Fast Free mobile service 1 from 0 den to Provo included representatives of ' fr r - 4 " A - ' 1711EE-np- v 1PM ai 31 110::':-- r 1 w One Utah Center 201 S Main St Suite 160 vm Aa:GRANDmAis im 773-995- 9 Sat Hours: Downtown 94 Redwood open Howley July 25 All stores open Mon-F- d Layton Store 1596 N Hillfield 10-- 2 Redwood & Layton Down & Layton cloced 10-- 5 |