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Lenders screw Pahoa
#11
quote:
Originally posted by jdirgo

Fannie Mae did recently pass a rule that they will not securitize Lava Zones 1 and 2 on the Big Island. I've been in contact with Senator Inouye's office and they are going to make a formal request asking Fannie Mae why they are singling out the Big Island when Maui has an active volcano as do Washington, Oregon and Alaska.


... and California and Wyoming ...

Well, if Wyoming's volcano pops, we're all doomed anyway, so I guess that's moot.
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#12
I fully agree with protecting investors moneys but isn't that what insurance is for?
They already have financing on many properties in the area, by no-longer offering it, they are indeed putting the investors at risk via the existing investments by simply reducing the financing opportunities. So they are putting the existing investments in immediate jeopardy for a possible house or two that might slip through without lava insurance and may or may not get hit by lava? It makes no sense. Where’s the foundation in the position; I see nothing but the foundational protections being removed.

Let’s not forget that Hawaii has the lowest declaration of natural disasters of all U.S. states.

Let’s get to the real issue they are looking at. It has everything to do with Job security/stability within the region and nothing else. The LZ1 and LZ2 argument is just targeting a given working class in the area. They are simply saying they won’t lend to people who buy the less expensive houses because they are (in the minds of the lenders) not fiscally stable people in general. Since they cannot come right out and use that reason, they are grasping at a baseless position and blaming Mother Nature. Let’s see them pull that weak position in Miami Fl. with all the hurricanes guaranteed to hit in the next 5 years.



E ho'a'o no i pau kuhihewa.
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#13
quote:
Originally posted by Wao nahele kane

I fully agree with protecting investors moneys but isn't that what insurance is for?
They already have financing on many properties in the area, by no-longer offering it, they are indeed putting the investors at risk via the existing investments by simply reducing the financing opportunities. So they are putting the existing investments in immediate jeopardy for a possible house or two that might slip through without lava insurance and may or may not get hit by lava? It makes no sense. Where’s the foundation in the position; I see nothing but the foundational protections being removed. It's irrational to restrict lending on LZ1 and LZ2 when you already hold such contracts.

Let’s not forget that Hawaii has the lowest declaration of natural disasters of all U.S. states. I think I read that tid bit of info not too long ago in one of the many federal agency websites.


E ho'a'o no i pau kuhihewa.

You need to do your homework - none of have lava insurance. Most of don’t have earthquake insurance either it is very expensive, therefore the risk.
If you think health care is expensive now, wait until you see what it cost when it’s free...now here come the taxes.....
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#14
"You need to do your homework - none of have lava insurance. Most of don’t have earthquake insurance either it is very expensive, therefore the risk."
Incorrect; I've done my homework.
Insurance is available for any LZ but it's not available through all underwritters and is very expensive in most cases.

You can get insurance for ANYTHING if you're willing to pay for it.

E ho'a'o no i pau kuhihewa.
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#15
On insurance in Lava Zone 2:
http://www.punaweb.org/Forum/topic.asp?TOPIC_ID=8719

You can still refinance in lava zones 1 & 2 but have to find the right loan officer.

Dan De Soto
Mutual Underwriters
Insurance Agent
www.insurancehi.com
dan@mutualunderwriters.com
Tel: 808-961-3207
Fax: 808-969-1120
275 Ponahawai St., Ste#105
Hilo, HI 96720
Dan De Soto
Mutual Underwriters
Insurance Agent
www.insurancehi.com
dan@mutualunderwriters.com
Tel: 808-961-3207
Fax: 808-969-1120
275 Ponahawai St., Ste#105
Hilo, HI 96720
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#16
Thanks for the reference Dan, I was reading through your insurance topic on the new policy offer in LZ2 a few weeks ago. Our new house will be in LZ2, but no lender financing will be used. I'm sure we'll eventually meet and get a policy through you. We're not really interested in using the state created HPIA coverage.

E ho'a'o no i pau kuhihewa.
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#17
quote:
Originally posted by Wao nahele kane

I fully agree with protecting investors moneys but isn't that what insurance is for?
They already have financing on many properties in the area, by no-longer offering it, they are indeed putting the investors at risk via the existing investments by simply reducing the financing opportunities. So they are putting the existing investments in immediate jeopardy for a possible house or two that might slip through without lava insurance and may or may not get hit by lava? It makes no sense. Where’s the foundation in the position; I see nothing but the foundational protections being removed.

Let’s not forget that Hawaii has the lowest declaration of natural disasters of all U.S. states.

Let’s get to the real issue they are looking at. It has everything to do with Job security/stability within the region and nothing else. The LZ1 and LZ2 argument is just targeting a given working class in the area. They are simply saying they won’t lend to people who buy the less expensive houses because they are (in the minds of the lenders) not fiscally stable people in general. Since they cannot come right out and use that reason, they are grasping at a baseless position and blaming Mother Nature. Let’s see them pull that weak position in Miami Fl. with all the hurricanes guaranteed to hit in the next 5 years.



E ho'a'o no i pau kuhihewa.


Last July the eastern rift zone opened and lava traveled east instead of the usual south direction.
The lava traveled about 6 of 16 miles toward Pahoa. If (when) it crosses Hwy 130 and cuts LZ 1& 2 off from the US of A as you put it, then what? Let me tell you: you have to evacuate before it crosses the road, (only one way out) you abandon your house and leave it for the looters and you have a worthless house and piece of land. Oh that's right you can get insurance for that too. Hmmm that might be one reason the financial institutions aren’t crazy about lending out here. They aren’t targeting the working class.

Let’s not forget that Hawaii has the lowest declaration of natural disasters of all U.S. states. I think I read that tid bit of info not too long ago in one of the many federal agency websites.
Your statement above needs to be defined. This may be the case in all of Hawaii but we aren’t talking about all of Hawaii now are we, no.
We are only talking about LZ 1&2 on the BI. I would like you to explain your statement to those who lost everything in Kapoho and Kalapana. The late 50’s and early 90’s both towns were gobbled up in fire and brimstone only 30 plus years apart. I’m not sure what brimstone is but I know its HOT. Oh, and lets not forget our friends in Royal Gardens.
It’s only a matter of time until we get the red stuff down here in Hawaiian Beaches. But us who live here don’t worry about it at all. Remember, tomorrows another day and we enjoy life.


If you think health care is expensive now, wait until you see what it cost when it’s free...now here come the taxes.....
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#18
Oh dude… I should have stayed asleep, you’re killing me over here.
Medicine man/ priest Scott,
While you’re running full speed for life to escape the "red stuff" down there in Lava zone 1 or 2.
Chew on this one a while.
http://en.wikipedia.org/wiki/Hurricane_Katrina
"At least 1,836 people lost their lives in the actual hurricane and in the subsequent floods"
"Preliminary damage estimates were well in excess of $100 billion, eclipsing many times the damage wrought by Hurricane Andrew in 1992"

Bigger storms are expected to come in the near future as forecasted by scientists, of that we can be assured and soon.
Financing and Insurance are still available from central Florida to Texas.

When are you certain that lava is going to cross 130? 200 years from now or tomorrow? Are you sure?
But wait...the Big Island produces very little in the realm of commodities and has very little business and or jobs.
Puna does not rate such attention from investors; accept the fact that the return on the potential investment is out weighed by the potential loss of the investment due to non-repayment by lack of industry and the meager threat of Lava.
If LZ1 and LZ2 were spanned along the southern coast of the mainland you’d be financed and insured with less trouble than one faces with regard to hurricanes.
Would you like me to "define" anything else for you?





E ho'a'o no i pau kuhihewa.
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#19
quote:
Originally posted by jdirgo

Fannie Mae did recently pass a rule that they will not securitize Lava Zones 1 and 2 on the Big Island. I've been in contact with Senator Inouye's office and they are going to make a formal request asking Fannie Mae why they are singling out the Big Island when Maui has an active volcano as do Washington, Oregon and Alaska. I also just got interviewed by the Star-Bulletin and the article will probably appear on Sunday.

John Dirgo, R, BIC, EcoBroker, ABR, e-PRO
Aloha Coast Realty, LLC
808-987-9243 cell
http://www.alohacoastrealty.com

Looks to me like they are just following the guidelines that were previously in place that they may have been ignoring.

http://www.hud.gov/offices/hsg/sfh/ref/sfh1-18i.cfm

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#20
Freddie Mac has always accepted the lava zones, but then it's about the particular contract the lender negotiated with Freddie whether they will buy those loans from that lender. Same will be with Fannie. Some lenders didn't even realize they were financing lava zones and we didn't tell them...ha-ha-ha. Those lenders are out of here now, just due to the mortgage industry crisis in general. Others tell me they don't even sell to Freddie Mac so forget it. Rural Development will guarantee loans in lava 1 & 2, supposed to be first time buyers, or non home ownership in past 3 yrs (103% financing, income limits apply). The local banks still loan here, FHB & CPHL with a .25 point hit. Call me for mortgage broker needs...965-7279
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