August 16, 2010

For immediate release

The steep decline in property values during Arizona’s current housing recession will have one benefit for Maricopa County homeowners: The county-controlled portion of their property tax bills will be lower for most homeowners this year.

The Maricopa County Board of Supervisors today set property tax levies that will result in tax bill reductions for most homeowners, at least for the county-controlled portion of the total tax. The Board reduced property taxes on existing properties by $23.8 million, or 3.9 percent. The typical residence in Maricopa County, with a median market value of $148,800, down from $192,000 last year, will see a reduction of about $25.

“I think the county has shown itself as a good steward of taxpayers’ money,” said Board Chairman Don Stapley. “It has been a rough year but we balanced the budget. Other jurisdictions in the state have not done the job as well as Maricopa County.”

Board member Max Wilson agreed. “I never lose sight that this is not our money. It’s the taxpayers’. Our action today will help in some way to reduce the burden on homeowners in Maricopa County,” he said.

County-controlled property taxes, which make up about 15 percent of total property taxes in Maricopa County, include the County primary levy, the Flood Control and Library District secondary tax levies. Maricopa County uses “pay-as-you-go” financing for capital projects, and unlike most other jurisdictions, does not use a secondary property tax for bonds. Property taxes collected by the state, cities, school districts, the community college district and other districts comprise the other 85 percent of property taxes.

“It is a delicate balance between funding important government services at adequate levels and keeping taxes low,” commented Supervisor Fulton Brock, of Chandler. “But that is the mission we ask of our staff and the departments. We’re staying the course. We are headed in the right direction.”

The Board’s policy of low, sustainable property taxes with no general obligation debt will save county taxpayers $128.5 million this year alone. Taxpayers have avoided an estimated $494 million in taxes since fiscal year 2002, according to the county Office of Management and Budget.

“Years ago, when we set off on a pay-as-you go policy, many we believe we couldn’t get it done. But we did it,” said Supervisor Andy Kunasek, of Phoenix. “Other counties across the country, even well managed ones, have struggled without facing any of the difficulties that we have faced.”

Today’s action followed the adoption in June of a “steady-as-you-go” $2.26 billion county budget for fiscal year 2011, which began July 1. The conservative budget anticipates little revenue growth in the next fiscal year and offers no cost of living adjustments or merit pay increases for county employees. Phoenix Supervisor Mary Rose Wilcox said that even with the pay-as-you-go plan on capital construction, “The county has been able to keep up with infrastructure needs, with the construction of the criminal court tower, the Flood Control District projects and county roads. “

Additional Contacts:

Deputy Budget Director Chris Bradley, 602-506-4960

Lesley Kratz, Senior Advisor to County Assessor Keith Russell: 602-506-7154

http://www.maricopa.gov/pr_detail.aspx?releaseID=1524

Percent of All U.S. Eggs Affected

ALPHARETTA, GA (August 18, 2010 – 10:30 p.m. ET) – Wright County Egg of Galt, Iowa, is expanding its voluntary recall (original recall date: August 13, 2010) of specific Julian dates of shell eggs produced by their farms because they have the potential to be contaminated with Salmonella.

Eggs affected by the expanded recall were distributed to food wholesalers, distribution centers, foodservice companies and limited retail outlets in California, Arizona, Missouri, Minnesota, Texas, Georgia, Washington, Oregon, Colorado, Nevada, Iowa, Illinois, Utah, Nebraska, Arkansas, Wisconsin and Oklahoma. These companies distribute nationwide.

Eggs affected by the expanded recall announcement are packaged under the following brand names: Albertsons, Farm Fresh, James Farms, Glenview, Mountain Dairy, Ralph’s, Boomsma, Lund, Kemps and Pacific Coast. Eggs are packed in varying sizes of cartons (6-egg cartons, dozen egg cartons, 18-egg cartons, and loose eggs for institutional use and repackaging) with Julian dates ranging from 136 to 229 and plant numbers 1026, 1942 and 1946. Dates and codes can be found stamped on the end of the egg carton or printed on the case label. The plant number begins with the letter P and then the number. In most cases the Julian date follows the plant number, for example: P-1720 223. There have been confirmed Salmonella enteritidisillnesses relating to the shell eggs and traceback investigations are ongoing. Wright County Egg is fully cooperating with FDA’s investigation by undertaking this voluntary recall.

All brands, plant numbers and Julian dates are listed in the Brands Affected document found here.

While this recall represents less than 1 percent of all eggs produced in the US, as always recommended by the Egg Safety Center and FDA, raw eggs should be handled and cooked properly with the egg yolks and whites cooked firm. Other egg brands that are not specifically in the recall list are not affected and should be safe to eat. Liquid, frozen, or dried egg products, because they are pasteurized, also are not affected by the recall and should be safe.

Consumers are reminded that properly storing, handling and cooking eggs should help prevent food-borne illness. For more information on proper handling and preparation of eggs and answers to other frequently asked questions, visit www.eggsafety.org.

Eggs previously announced as affectedinclude the following brand names: Lucerne, Albertson, Mountain Dairy, Ralph’s, Boomsma’s, Sunshine, Hillandale, Trafficanda, Farm Fresh, Shoreland, Lund, Dutch Farms and Kemps. Eggs are packed in varying sizes of cartons (6-egg cartons, dozen egg cartons, 18-egg cartons, and loose eggs for institutional use and repackaging) with Julian dates ranging from 136 to 225 and plant numbers 1026, 1413 and 1946. Additional brands specific to Northern and Central California and Reno, Nevada, include Bayview, Mountain Dairy, Nulaid, and Sun Valley. Affected plant numbers are 1091 (Julian date 167-174), 1686 (Julian date 142-149), and 1951 (Julian date 193-210).

The chance of an egg containing Salmonella Enteritidis is rare in the United States. Several years ago, it was estimated that 1 in 20,000 eggs might have been contaminated, which meant most consumers probably wouldn’t come in contact with such an egg but 1 time in 84 years. Since that time most U.S. egg farmers have been employing tougher food safety measures to help protect against food-borne illness. Chief among these methods are modern, sanitary housing systems; stringent rodent control and bio-security controls; inoculation against Salmonella Enteritidis; cleaning and sanitization of poultry houses and farms; and testing.

About the Egg Safety Center
The Egg Safety Center provides scientifically accurate information on food safety issues related to eggs. We work with egg producers to provide them with the most up to date information available and are dedicated to educating consumers on proper food handling to reduce the incidence of food-borne illness. For more information on egg safety visit www.eggsafety.org.

The percentage of borrowers underwater on their mortgage declined during the second quarter, but that welcome change of pace could come to an abrupt end as home values are again beginning to fall in markets across the country.

The real estate data provider Zillow reported Monday that negative equity — which refers to the percentage of single-family homeowners with mortgages who owe more on the loan than their home is worth — dropped to 21.5 percent in Q2.

That’s down from Zillow’s negative equity reading of 23.3 percent in the first quarter of this year, and 23 percent during the second quarter of 2009.

The Zillow Home Value Index shows that home values, too, continued to drop in the second quarter, but the Seattle-based company says the rate of decline decelerated from the first quarter.

Zillow reports that home values in Q2 fell 3.2 percent year-over-year and 0.6 percent from the first quarter. It marked the second consecutive quarter of slowing declines. Based on Zillow’s market data, the national median home value last quarter was $182,500.

Conditions varied among individual markets across the country. In California, where both federal and state tax credits were available to some homebuyers, more than a quarter — 27.8 percent — of markets tracked by Zillow saw increases in home values in the past year.

Home values in five California markets have increased for the past five quarters, according to Zillow’s study, and four of those have increased by more than 5 percent since the second quarter of 2009. The Zillow Home Value Index was

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Housing-related loan delinquencies improved across the board in the first quarter of 2010, the American Bankers Association (ABA) recently reported.

According to ABA’s first quarter Consumer Credit Delinquency Bulletin, home equity delinquencies fell for the first time in two years to 4.12 percent of all accounts, down from 4.32 percent the previous quarter. During the same period, home equity lines of credit delinquencies fell to 1.81 percent from 2.04 percent, and property improvement loan delinquencies fell to 1.4 from 1.63 percent.

James Chessen, ABA chief economist, said the sweeping improvements in housing-related loan delinquencies indicate stability is returning to the housing market. “This is the first inkling that stability is taking hold in the housing market, but the pace of recovery will still be long and drawn out,” he noted.

Fannie Mae says it will get tough on borrowers who engage in “strategic defaults,” or walk away from a home that’s worth less than what’s owed on the mortgage even if they can afford to keep making their payments.
Economist Mark Zandi of Moody’s Analytics has estimated that 9 million homeowners are “underwater” by more than 20 percent, making them more likely to consider a strategic default.
Fannie Mae said Wednesday that it will not only refuse to guarantee another loan for seven years if it has evidence that a borrower chose to default on their loan, and will seek to recoup losses in court through deficiency judgements in states that allow lenders such recourse.
There’s a carrot-and-stick aspect to the new policy. Troubled borrowers who work with their servicer on foreclosure alternatives such as loan modifications, short sales, or deeds in lieu of foreclosure can be eligible for a new loan in two to three years if they can show extenuating circumstances such as job loss, illness or divorce.
“Walking away from a mortgage is bad for borrowers and bad for communities, and our approach is meant to deter the disturbing trend toward strategic defaulting,” said Terence Edwards, Fannie Mae’s executive vice president for credit portfolio management, in a press release (http://www.fanniemae.com/newsreleases/2010/5071.jhtml).
“On the flip side, borrowers facing hardship who make a good faith effort to resolve their situation with their servicer will preserve the option to be considered for a future Fannie Mae loan in a shorter period of time.”
Under policy changes announced in April, borrowers may be eligible for a loan guaranteed by Fannie Mae within two years of a short sale or deed in lieu of foreclosure.
Those who can demonstrate extenuating circumstances such as a job loss will be required to make down payments of at least 10 percent, and those who cannot must make 20 percent down payments.
Fannie Mae usually requires five years for borrowers who have been foreclosed on to reestablish credit, but those who can demonstrate extenuating circumstances may qualify in as soon as three years.
Next month, Fannie Mae says it will instruct its servicers to begin monitoring delinquent loans facing foreclosure and issuing recommendations for cases that warrant the pursuit of deficiency judgments.
While Fannie Mae won’t be able to obtain deficiency judgements against borrowers who default on their first loans in “non-recourse” lending states, in some of those states it might have recourse to seek deficiency judgements on refinance and home-equity loans.
In the 1930s, many states including California passed laws that barred lenders from suing homeowners who defaulted on their mortgages for losses above and beyond what lenders were able to recover when foreclosing on and reselling the borrower’s home.
California lawmakers are considering a bill that would extend some protection from deficiency judgments for borrowers who refinanced their mortgages.

By Inman News, Thursday, June 24, 2010.
http://www.inman.com/news/2010/06/24/fannie-cracking-down-walkaways

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