Tuesday, January 31, 2012
I just witnessed the signing of the home on Ritter Drive in Riverdale Utah. Look for your new neighbors!!
Riverdale appoints interim fire chief
RIVERDALE -- Dean Gallegos has been named the acting fire chief after the resignation of former chief Doug Illum.
Mayor Bruce Burrows said Illum submitted a resignation letter Dec. 5 with the intention to resign effective June 1. However, due to family issues, Illum upped the effective date to Jan. 23.
Illum was hired with Riverdale on July 1, 2004. Gallegos has been with the department for 14 years, Burrows said.
Official action to replace Illum is on hold while city staff and council evaluate the best option going forward, Burrows said. He said the item would likely be discussed during an executive session Feb. 7.
In other personnel news, Riverdale Police Chief Dave Hansen exercised an option to retire in place. He will continue as police chief while simultaneously collecting retirement benefits. Hansen has been employed with the city for 26 years.
Burrows said the arrangement saves the city money that would have otherwise been spent on Hansen's retirement. Instead of paying 28 percent of Hansen's retirement costs, the city will now pay only 6 percent.
"It is to our advantage to save 22 percent," Burrows said.
Riverdale Utah always changing
Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.
The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.
Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.
However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.
Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.
Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”
In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.
While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.
Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generation actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.