Credit Union Finance: August 2005

PMI Mortgage Insurance ranks Boston housing market at greatest risk for a price decline

http://home.businesswire.com/portal/site/pmi/index.jsp?epi-content=GENERIC&newsId=20050727005257&ndmHsc=v2*A1104584400000*B1124935213000*C4102491599000*DgroupByDate*J2*N1001171&newsLang=en&beanID=1997786033&viewID=news_view

What's your score? Take the ID theft quiz

WEST LAFAYETTE, Ind. (8/23/05)—A Purdue University cybercrime expert has a simple message: Don't make it easy for thieves to steal your identity. And he's using a simple quiz to help people assess their risk of becoming a victim (Purdue News Service Aug. 16).
Scott L. Ksander, a senior forensics analyst with the Center for Education and Research in Information Assurance and Security, says thieves don't need high-tech access to computer data to steal our identities--we make our personal information available in many other ways. He uses, with permission from the Privacy Rights Clearinghouse, this quiz at standing-room-only public forums:

I receive several offers of pre-approved credit every week. (5 points) Add 5 points if you don't shred them.
I carry my Social Security card in my wallet. (10 points)
My driver's license has my Social Security number on it. (10 points)
I don't have a post office box or a locked, secured mailbox. (5 points)
I use an unlocked, open box at work or at home to mail my bills. (10 points)
I carry my military ID in my wallet at all times. (10 points)
I provide my Social Security number whenever asked, without asking questions about how that information will be safeguarded. (10 points) Add 5 points if you provide your number orally without checking to see who might be listening.
I'm required to use my Social Security number at work as an employee ID or at school as a student ID number. (5 points)
My Social Security number is printed on various documents frequently seen in the workplace, such as on time cards. (10 points)
I have my Social Security number and/or driver's license number printed on my personal checks. (10 points)
I carry my insurance card in my wallet, and either my Social Security number or that of my spouse is on that card. (10 points)
I haven't ordered a copy of my credit report for at least two years. (20 points)
I don't protect my discarded personal, credit, and financial information from thieves by shredding them prior to putting them in the trash. (10 points)

Add your score. If it's 100 points or more, you are at high risk for identity theft. If your score is 50-100, you're at average risk, but your risk is higher if you have good credit. If your score is 0-50 points, you have a low risk of being an identity theft victim.

Credit Scores Age Like Vintage Bordeaux

http://www.fool.com/News/mft/2005/mft05082225.htm

BRAC Impacts on the State of Maine

If all 3 Maine bases are closed the impact to the Maine economy would be worst than the last recession we had in the late 80's, early 90's. This federally induced event would eliminate 13,418 jobs and another 3,000 indirect jobs. for comparision sake, in the 1990-91 recession we lost 13,230 jobs. If all 3 bases are closed approximately $630 million dollars of earnings would be gone from the Maine economy. The unemployment level could rise from 4.1% currently to 15%. Other considerations that would affect our economy include:

Depressed housing prices
Population decline
Housing vacancies and resulting loss of tax base
Loss of dependents who participate in work force or volunteer in communities
Public school enrollment impacts

The three myths of condo investing

http://money.cnn.com/2005/08/19/real_estate/investment_prop/cuckoo_condos2_0509/index.htm?cnn=yes

What if housing bubble bursts?

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/08/20/BUG4LEAGRV1.DTL

York County, Maine MLS Listings up 60% from a year ago

In my opinion, the 2 most dangerous threats to the real estate market are:

Supply and Demand - In July 2004, there were 2,200 home listings in York County Maine, and houses were selling briskly. July 2005 reflects 3,500 MLS listings and it's taking longer to move homes.
Interest Rates moving to 7.5% to 8% for 30 year financing could impact our local markets by 20% or more. Many homes are up 70-80% in 3 years, so a 20% drop is very realistic over the next few years. If supply continues to increase we could see even more of a price drop.

My local real estate agent said the market topped in 2004, and based on his experience during the last market correction, we could prices slowly deteriorate over the next 3-4 years.