Friday, July 19, 2006
Headlines--- Classified Ads-Doc.Mgr./Finance/Legal ######## surrounding the article denotes it is a “press release”
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Blumehof Winery, Dutzow, Missouri *
Restaurant
For a full listing of all “job wanted” ads, please go to: To place a free “job wanted” ad, please go to: *"Wine is a constant proof that God loves -Benjamin Franklin (1706-1790) “Blumenhof Winery is located on Highway 94 in the historic village of Dutzow, Missouri's oldest German settlement, founded in 1832. Blumenhof, which in German means "Court of Flowers," takes its name from the Blumenberg family's ancestral farm in northwestern Germany. German heritage is also expressed in the winery's architecture and in the warm friendly ambiance that invites visitors to "stop... and smell the Blumen." -------------------------------------------------------------- Pictures from the Past—1994
Bill Graneri, Principal Graneri Associates Milltown, NJ The late Master of equipment leasing sales training. His books and audio tapes are still valid today.
-------------------------------------------------------------- Mortgage rates at 4-year high
30-year mortgages rates hit their highest level nationally since the spring of 2002. Freddie Mac reported yesterday that rates on 30-year, fixed-rate mortgages increased to a nationwide average of 6.80 percent, up from 6.74 percent last week. The increase pushed 30-year rates to the highest level since they stood at 6.81 percent the week of May 24, 2002. Across the country, reports come in that housing prices continue to rise, such as 5% reported in Dallas, Texas. The low mortgage rates pushed the largest boom since World War II, but sales are slipping with more “inventory” on the market. It was predicted that by the end of the year mortgage rates would hit 7%, but it appears it will happen much sooner than later, particularly if the Feds raise rates, which they will do, but the guess is when, August or September. Inflation continues in all products as China buys all raw material, including oil, in great numbers. The rise in mortgage rates this week was blamed in part on further increases in inflation, including a 0.3 percent increase in core inflation as measured by the consumer price index, which was reported on Wednesday. Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, increased to 6.41 percent, up from 6.37 percent last week. Rates on one-year adjustable rate mortgages rose to 5.80 percent, up from 5.75 percent last week. Rates on five-year adjustable-rate mortgages rose to 6.36 percent, up from 6.33 percent last week. The mortgage rates do not include add-on fees known as points. The 30-year and five-year mortgages carried a nationwide average fee of 0.5 point. The 15-year mortgage had a nationwide average fee of 0.4 point and the one-year ARM carried a fee of 0.6 point. A year ago, 30-year mortgages averaged 5.73 percent, 15-year mortgages stood at 5.32 percent, one-year ARMs were at 4.42 percent and five-year ARMs averaged 5.26 percent.
---------------------------------------------------------------- Reverse mortgages on the rise ABSnet
Securitizations backed by reverse mortgages are expected to boom in the second half of this year, with as many as six deals being discussed in the market, according to private and rating agency sources. The sector has piddled along in recent years, restrained by low volume and secondary market unfamiliarity. Now, sizable strides in origination volume and more accommodating regulatory changes have drawn the interest of investment bankers — always happy to stumble upon a new and, at least initially, higher-yielding asset class. “We're pretty bullish about the growth of our industry, and particularly as it relates to the secondary market. We're getting a lot of interest from traditional investors that have been buying bonds and loans in the (traditional mortgage) market,” said Jim Mahoney, chief executive of Financial Freedom Senior Funding Corp., a subsidiary of IndyMac and the largest U.S. reverse mortgage lender by market share. A run-up in housing values, along with an aging U.S. population, has an increasing number of mortgage lenders interested in issuing the loans. First Freedom's dollar volume alone increased to $1.1 billion in the first quarter from $506 million a year earlier. (Secondary market developments within the reverse mortgage market contributed to IndyMac's decision not to spin the company off in an IPO this year.) The lender, which historically has sold its proprietary loan product to Lehman Brothers, has negotiated a deal to sell its Federally insured strain of reverse mortgage loans to an additional private investor. The lender is also considering the prospect of direct securitization, Mahoney said. Reverse mortgages are essentially an alternative to home equity loans for elderly homeowners. In a reverse mortgage, the lender typically pays the borrower, either once, monthly or in a line-of-credit fashion, based on the home's value and length of time the borrower is expected to live or occupy the residence. Growing market Up until now, all reverse mortgage securitizations have been backed by uninsured loans, which are tough to accumulate because they comprise only a sliver of the market, and are expensive to securitize. Roughly 95% of reverse mortgages are the Federal Housing Administration-insured Home Equity Conversion Mortgages (HECMs), and up until recently, Fannie Mae has scooped up the majority of them for its portfolio. But within the last several years, regulatory changes that allow for the HECMs to be securitized within REMIC structures have prompted a number of investment banks to intercept Fannie Mae's hold on these loans. Adding to the sector's momentum, a bill currently idling in Congress would work to increase HECM loan limits and lift a cap set on the number of such loans that can be originated, according to Darryl Hicks, associate director of the Reverse Mortgage Lending Association, the industry's trade organization. The number of HECM loans issued this year is up 77% over last year, Hicks said. The Department of Housing and Urban Development last year reported some 450 lenders approved to issue the HECM loans, compared to about 200 in 2004, he said. “If you look at the fact that (HECM loans) represent 90% of the unit count in originations these days, the first place where investors will go is where the loan volume is, and that is with the FHA conversion mortgages, so I think you'll see a HECM securitization in the near future,” Mahoney said. Secondary market develops Investment banks are at various stages of readiness to issue reverse mortgages securitizations; some are acquiring loans and structuring their deals while others are simply feeling the waters. “We've had inquiries from several investment bankers on about half-a-dozen or so transactions that they are putting together and expect to bring to market in 2006,” said Vincent Barberio, a managing director in Fitch Ratings' RMBS group. Most of the inquiries, he said, are regarding the HECM loans. Standard & Poor's is also anticipating as many as six transactions this year, while Moody's Investors Service in its esoteric ABS outlook for this year predicted one deal. Likewise, only one reverse mortgage deal came to market last year — the $503 million Structured Asset Securities Corp. Reverse Mortgage Loan Trust Series 2005-RM1. The deal was the first to come to market since 2002; it was brought by Lehman Brothers and serviced by Financial Freedom. Mirroring past reverse mortgage securitizations, the deal came as a two-tranche, triple-A and double-A, structure protected by subordination, excess spread and a separate $151 million funding account required to cover the undrawn portion of the portfolio's reverse mortgage loans. Securitizing HECM loans, on the other hand, would require significantly less credit enhancement. The primary rating agency concern with reverse mortgage loans is the so-called “cross-over point” — essentially where the collateral value is less than the outstanding loan. This could happen as a result of decreased home value, for example. Helping to mitigate that risk, the lender has the ability to assign HECM loans back to HUD if they reach a 98% LTV ratio, Barberio said. Securitizations backed by HECM loans could include a larger triple-A tranche, Barberio said. “I think people are going to focus on the higher credit tranches. We have seen several proposals that have been quite innovative,” said Terry Osterweil, a director at S&P. “The structures are probably going to get more interesting.” — AP (c) 2006 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved. ----------------------------------------------------------------
Tiger Leasing joins “Broker/Lessor” list Third Column: YES - Year Company Started | YELB - Years in equipment Leasing Business A - City Business License | B- State License | C - Certified Leasing Professional |
To view the full list, please go here:
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Back Office Companies
(i) Haws Consulting Group - "We have been in business since 1982 and provide property tax consulting and outsourcing services to a variety of different types of companies. We have a strong leasing background and have provided property tax management services to leasing companies for over 20 years." For more information please see our Brochure and Case Study. To view the full list, please go here:
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---------------------------------------------------------------- Gerry Egan on “Evergreen Leases”
(It should be noted that the complaint regarding the Evergreen lease is about the company salesman, who was admittedly paid a commission up front for the “evergreen payments,” and not a leasing broker. In the NorVergence lease scandal, the Days, Cybernet, AllServe, and those written about the last several years, none of them involved an independent leasing broker. Many also were not through leasing sales personnel, but via “management.” In the NorVergence scam, perhaps the credit department would have been more strict and operations more diligent if a leasing broker were involved. Please read Gerry's opinion. editor)
Gerry Egan since 1981 has been involved in Equipment Leasing training, education, and has written many articles. He is unique in his consulting profession as " We broker leases, hold our own leases and discount leases to local banks in addition to managing and servicing the leasing programs for a couple of small banks." I see two aspects to the issue. On one hand, if the evergreen clause is spelled out in the documentation, and most of the ones I'm familiar with are, then I generally take a 'caveat emptor' approach and say that it's up to the Lessee to know what it is they're signing. With that said, however, just because something is legal doesn't make it good business. The most egregious examples I've seen simply aren't good business. More often than not, there's a new lease there for me when I handle it that way. At the very least, though, I feel I've been fair and I'm not afraid to meet them later. Before I began scaling this business back, we had a very high percentage of repeat customers with many having done over twenty leases with us. How I handle evergreen clauses isn't about what I can get away with legally in the fine print, it's about what makes good business sense. Gerry Egan President TecSource, Inc. About Gerry Egan: http://www.realworldsalestraining.com/ ---------------------------------------------------------------- Gerry and Jamie on the Road again Leasing News has been after Gerry Egan to write another "Sales Makes it Happen." I think he has a lap top with him, but he seems to be enjoying traveling with his wife more. He sent me these two pictures, and I pass them on to you as well as part of his e-mail. Kit Menkin
"Here is picture of Jamie and me taken by the Grand Teton Mountains, and a quiet spot we found in Wisconsin on the way home from the NAELB convention this past spring. I stopped there to find ---and did find--- graves of my great-great-grandparents. It was cold there but it was such a pretty, peaceful spot, we stayed there for a week while I wrote the script for a video project I'm working on. Now you see why it's hard to drag us back to the office!!!!"
---------------------------------------------------------------- Leasing Association Events-Meetings Open to All
UAEL Pacific Regional Event Oregon Region's Cocktail Wednesday, July 26th, 2006 Ram Big Horn Brewing Co. Situated on the bank of the Willamette River, this is a wonderful location and format to attend after work with an opportunity spend time with other lessors/brokers and funding sources. As the Oregong Region has continue to remain strong with many loyal and active members, this event will definitely be a great opportunity you will not want to miss. No cost to attend Please contact Kim at the UAEL office for more information. -------------------------------------------------------------------------------
August 3, 2006 EAEL's Day at the Races Great Networking in an Executive Suite with luncheon buffet, open bar and fabulous Thoroughbred ricing. For registration information, please contact the EAEL office at 212.809.1602 or alison@eael.org ------------------------------------------------------------------ August 8, 2006 Phoenix Arizona Networking and… The Arizona Equipment Leasing Association invites you to join us for a networking session with selected funders and your peers followed by an evening of Baseball with the Arizona Diamondbacks. Meeting and Networking: Sam’s Café Southwestern Grill · Arizona Center Followed by: Arizona Diamondbacks vs. the San Francisco Giants We need your early reservation and payment to get the correct ticket count for the game!!!. Fee: $20 payable by July 11, 2006. Price includes, networking with funders, heavy hors deurves, drink ticket and game ticket. RSVP/Registration form to Steve AmRhein..samrhein@leaseplans.com.. Name ------------------------------------------------------------------
August 14, 2006 EAEL Golf outing Hosted by Jim Jenco and Robert Ingram. For registration information, please contact the EAEL office at 212.809.1602 or alison@eael.org ------------------------------------------------------------------
August 17th Rock Spring Country Club To register or learn more, please go here: ---------------------------------------------------------------- ELA and FASB/IASB Meeting News If you are on our mailing list, you received this extra edition on Thursday: Walgreen Co. would be hit hardest by the expected change. The Deerfield-based company would need to put an additional $18.2 billion in lease obligations on its books, according to a report by New Constructs LLC, an investment research firm. "We follow all accounting standards right now, and if those standards are changed, we will follow the new ones," said Walgreen's spokesman Michael Polzin. If you want to be on our mailing list for notifications of “extra” ---------------------------------------------------------------- FASB----A giant leap for... www.leasingnotes.
Yes, folks, the step has been taken. Both the FASB and IASB agreed yesterday to undertake a joint project designed to overhaul FAS 13, and, implicitly, IAS 17, the international lease accounting standard. The proposed timetable includes FASB staff research on the scope and implications of the project, followed by Board deliberations during 2007. A Preliminary Views document will be issued and comment will be solicited from interested parties in 2008, with a formal Exposure Draft issued for comment in 2009. If the rabble rousers get their way, all leases will end up on the balance sheet, even though this result goes against every lease accounting standard in the world, along with the civil laws of some countries. Based on the comments, it appears that any revision to FASB 13 may only be a patch that addresses the off balance sheet treatment for lessees, since the Board does not want the complex issues involved in lessor accounting to delay progress on the project. Several members of the FASB Board specifically mentioned that the issue of materiality for small ticket transactions would be taken into account as the Board deliberates, something for which Alta principal and former ELA President Michael Fleming has pushed. The Board has requested that the ELA be represented on the project work group, which the association has agreed to. Apparently, there was unanimous agreement by the FASB that current rules are deficient. According to FASB member Leslie F. Seidman, "…investors are concerned that existing standards do not require balance sheet recognition of significant assets and liabilities arising from leases.” There is plenty of press about this issue, also. The Analyst's Accounting Observer weblog, for instance, claims that “it's just a good idea to fix a standard that produces standardly awful results.” As the AAO points out, current lease accounting doesn't say much about the future obligations of a company's operating leases, and, although analysts adjust the balance sheet to account for the obligation, it is a haphazard, imperfect exercise. “Investors shouldn't have to jury-rig balance sheets to make them say something when they're dealing with fairly standard transactions.” Bold talk, but, although everyone knows it needs fixing, no one has come up with realistic solutions. Furthermore, won't the same reporting problem exist if operating leases go on balance sheet? As Luca Pacioli tells us, if there is a liability there must be an asset. Now what do I do as an investor? The balance sheet shows a bunch of assets, some of which are real and some of which are leasehold interests. The real assets can be converted to cash, but not the leasehold interests. So, now I have to restate the balance sheet from information I will probably get from the footnotes to properly determine the quality of the company's assets. Sound familiar? Oh, how I love lease accounting! Shawn D. Halladay
--------------------------------------------------------------- FASB Formally Adds Project to Reconsider Lease Accounting Board Responds to Investors' Request for Clearer Reporting of Leasing Arrangements NORWALK, Conn.----The FASB today formally added to its agenda a project to reconsider the current accounting standards for leases. The goal of that project is to insure that investors and other users of financial statements are provided useful, transparent, and complete information about leasing transactions in the financial statements. The decision to add a leasing project, which will be conducted jointly with the International Accounting Standards Board, reflects the Board's concern that the current accounting in this area does not clearly portray the resources and obligations arising from lease transactions. Before making this decision, the FASB consulted with its constituents, including the FASB's Financial Accounting Standards Advisory Council (FASAC), its User Advisory Council (UAC), and the SEC staff. Many of those constituents urged the Board to undertake a project, expressing the view that current lease accounting standards fail to provide complete and transparent information. In fact, the SEC staff formally raised issues with, and recommended improvements to, this area as part of its June 2005 report to Congress on off-balance sheet arrangements as required by the Sarbanes-Oxley Act of 2002. Leases serve a vital role in businesses around the world. The current U.S. accounting standard in this area, FAS 13, Accounting for Leases, was established in 1976. While that standard represented a significant improvement at the time, lease arrangements have evolved considerably over the past 30 years and the standards are outdated. Today, leasing arrangements can vary from simple rentals of equipment to complex, tax-motivated arrangements involving real estate and other types of assets. Moreover, the current accounting standards in this area are complex and rules-based, which makes it possible to structure transactions to achieve desired accounting outcomes. "The Board has been asked to take a fresh look at the current accounting standards on leasing for a few reasons," said Leslie F. Seidman, FASB Member. "First, investors are concerned that existing standards do not require balance sheet recognition of significant assets and liabilities arising from leases. Second, current accounting guidance in this area is rules-based and voluminous. Accordingly, the goal of this project is to develop principles that would faithfully represent lease transactions in the financial statements of lessees and lessors and would reflect similarities and differences in the wide variety of leasing arrangements prevalent in today's business environment." "One of the initial steps will be to form a working group made up of interested parties with knowledge and expertise about a wide range of leasing arrangements. We are coordinating that effort with the IASB. We will also continue to seek input from our advisory councils and Investor Task Force," Ms. Seidman said. The FASB and IASB agreed that the first major milestone relating to this project will be a Preliminary Views document, which they plan to issue for constituent comment in 2008. About the Financial Accounting Standards Board Since 1973, the Financial Accounting Standards Board has been the designated organization in the private sector for establishing standards of financial accounting and reporting. Those standards govern the preparation of financial reports and are officially recognized as authoritative by the Securities and Exchange Commission and the American Institute of Certified Public Accountants. Such standards are essential to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information. For more information about the FASB, visit our website at www.fasb.org. Contact: ### Press Release ########################### Zions Bancorporation Reports Record Earnings of $1.35 SALT LAKE CITY, -- Zions Bancorporation (Nasdaq: ZION) ("Zions" or "the Company") today reported second quarter net income of $145.3 million, or $1.35 per diluted share. Net income and earnings per share increased 22.3% and 3.8%, respectively, over the $118.8 million, or $1.30 per diluted share for the second quarter of 2005. The return on average common equity was 13.20% for the second quarter of 2006, up from 12.92% for the first quarter of 2006. The second quarter of 2006 includes after-tax merger related expense of $5.6 million ($0.05 per diluted share) related to the acquisition of Amegy Bancorporation, Inc. ("Amegy") and the related systems conversion. All comparisons to the 2005 periods reflect the effects of the Amegy acquisition. "We are pleased to again report record quarterly earnings, driven by very strong loan growth, a relatively stable net interest margin, and continued excellent credit quality," said Harris H. Simmons, chairman and chief executive officer. "On balance sheet loans and leases grew $1.5 billion during the quarter, a record amount of growth, as economic activity remained strong throughout most of the West and Southwest," continued Simmons. "During the quarter, we also completed the conversion of Amegy Bank systems, and anticipate that this conversion will result in improved efficiencies going forward." Year-to-date net income for 2006 increased 23.5% to $282.9 million or $2.62 per diluted share compared to $229.0 million, or $2.50 per diluted share for the same period of 2005. The return on average common equity for the first six months of 2006 was 13.06% compared to 16.20% for the first six months of 2005. Strong Loan Growth On-balance-sheet net loans and leases were $32.7 billion at June 30, 2006, an increase of approximately $1.5 billion (19.8% annualized) from $31.1 billion at March 31, 2006, and an increase of 37.2% from $23.8 billion at June 30, 2005. Loan growth during the second quarter was in the commercial and commercial real estate categories and was widely diversified geographically. Full press release at: ### Press Release ###########################
News Briefs---- Fed Uncertainty Over Interest Rates Makes It Long Summer for Investors Community bank earnings: Deposit growth strong Harris bank names first female CEO Google Finds Bigger Profits With AdSense Intel profit plunges, layoffs loom ---------------------------------------------------------------
You May have Missed--- Tourism damage control in Boston ---------------------------------------------------------------
Sports Briefs---- Bonds won't be indicted today Players Debate Unresolved Bonds Case A low start for Tiger as British Open starts on blazing pace New Sacramento arena to cost between $470 and $542 million ----------------------------------------------------------------
California News Briefs--- Schwarzenegger gives $150 million loan to stem cell agency ----------------------------------------------------------------
“Gimme that Wine” Portuguese wines grab attention Mondavi celebrates 40 years of inno Mondavi celebration's 'Taste 3' honors past and looks to the future Wine Prices by vintage US/International Wine Events Winery Atlas Leasing News Wine & Spirits Page ----------------------------------------------------------------
Calendar Events This Day Belgium: National Holiday Guam: Liberation Day. Monkey Day ----------------------------------------------------------------
Today's Top Event in History 1861-In the Battle of Bull Run Union General Irvin McDowell was defeated by Confederate troops led by General Joseph E. Johnston at the first Battle of Bull Run at Manassas, VA. It was the first major engagement of the war. It was during this battle that Confederate General T.J.Jackson won the nickname “Stonewall” (by the way, the movie “Gods and Generals is only boring, but inaccurate.) In the second Battle of Bull Run, August 29-30,1962, Union General John Pope was badly defeated by General Robert E. Lee. For trivia buffs, CS Col Francis Stebbins Bartow, 8th GA, killed at 1st Bull Run July 21, 1861, was the first Georgian to die in the war. On July 18, 1861, with Confederate and Union troops gathering nearby, a Union shell dropped through the chimney of the home of Wilmer McLean who had retired to an estate near Manassas Junction VA. When the smoke had cleared and the first major battle of the war known as 1st Bull Run was over, McLean moved away from the war to a small quiet area of Virginia known as Appomattox Court House. On Sunday, April 9, 1865, the war ended in McLean's parlor with the meeting of Lee and Grant for the signing of the surrender of the Army of Northern Virginia. (lower half of : http://memory.loc.gov/ammem/today/jul21.html ----------------------------------------------------------------
This Day in American History 1828-The first strike in which a militia was called out occurred in Paterson, NJ when the Godwin Guards of the national militia were ordered to keep peace during a strike bought about by the changing from noon to one o'clock. the strikers were defeated, but the noon lunch hour was afterwards restored. --------------------------------------------------------------
Baseball Poem The Closer "We need to have a talk about the door." The hissing message piques his ears. His hair The closer takes the field, immersed in sweat, He bends and grabs the rosin, throws it down, McFarland New Baseball Book Catalogue
To order the new McFarland baseball book catalogue, -------------------------------------------------------------- SuDoku The object is to insert the numbers in the boxes to satisfy only one condition: each row, column and 3x3 box must contain the digits 1 through 9 exactly once. What could be simpler? |
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