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Show The National Enterprise . May 4, 1977 Page eighteen AIR CARGO to SAN FRANCISCO Speculators are unwelcome Continued from page one Riskier business In Utah, the scene is different. "We will not make a home loan to a speculator, if we can and LOS ANGELES identify Sunday thru Friday Next morning delivery in-bou- nd and out-boun- d! him, says Tracy Mortgage Company head Tracys in- Trello Prince. vestors consider such loans riskier than loans to and will not accept them. Prince says a mortgage applicant is investigated to determine home occupation patterns and other real estate holdings, and those who show evidence of frequent moves and large holdings are denied owner-occupier- s, loans. Prudential Federal Savings and Loan gets applications from perhaps two speculators per month, according to vice president Haydon Calvert, and it charges an additional 14 interest rate to recognized speculators to cover the additional risk of such loans. Yet, savings and loan companies are better equipped to deal with speculators, according to local mortgage bankers, for two reasons: (1) Regu lations permit S & Ls to accept conthe low tracts that most speculators require in order to make a of the contract. . quick on the order of $2,000 $4,000. (2) S & Ls keep a large proportion of their loans without and dont have to deal with reticent down-payme- nt re-sa- le speculative fires in California, the Federal Home Loan Bank Board announced Friday an increase of a full percentage point in the interest it charges on loans to its member associations. The decision was made with the avowed intention of pushing S&Ls to cull speculators from their lending rolls, the Wall Street Journal reported. The increase means that associations borrowing from the bank will pay 2 percent for loans up to a year and percent for one- - to five-yeloans. 7-1- 8-- 12 ar -- Mortgage companies gener- ally do not deal with spec- CargoExecutive Adeiphic Enterprises Salt Lake International Terminal Airport, (801) 533-081- ulators, says Prince, because the companies must sell the loans to investors who, in most cases, will not buy loans 8 to non-occupie- rs. Not a Utah animal re-sal- e, In an attempt to douse the The Califomia-variet- y specin find is ulator hard to Utah, Utah Board of Realtors says President Robert Wilkinson. A few individuals and real estate brokers will speculate in existing housing, he says, but Ive run into very few people buying new houses with the intention of in a short time. Wilkinson y says speculators are more likely to buy a re-selli- ng Utah-variet- run-dow- n handymans special, invest a little money in improvements, and then for a profit. Another variation, he says, is buying a home, leasing it for a few it. years, and then re-se- ll re-selli- ng Weve got balance Balance seems to be the red flag that's keeping widespread housing speculation The Utah out of Utah. is housing market and money is being made where its earned, says investment vice president John Schumann of Surety Life Insurance Company. Supply is keeping up with demand, and nobodys going to buy a house from a speculator when he can get the same thing for less from a builder just down the street. When an individual has to have a sizeable income in order to own a house, he says, it gets pretty heavy supfor two even houses, porting just a few months. well-balance- d, Speculation is easy in a hot market, according to Schumann, and the Wasatch Front housing market is good, but not hot. He attributes what little speculation he finds to aggressive realtors who, in soliciting business, make speculators out of homeowners who would not otherwise be in the housing market. Condos tell another story If detached, single-famil- y homes are not feeling pressure from speculators, rental and condominium units are just the opposite. When The Willows" apartment village recently went condominium, brokers esti- - |