BEDC Releases Economic Benchmarking Report

BLOOMINGTON, INDIANA (November 18, 2011) – The Bloomington Economic Development Corporation (BEDC) today announced the release of A Look Inside the 2011 Bloomington Economy, a report providing comparative data about the Bloomington economy alongside Bloomington’s peer communities across the United States. The report, completed by the Indiana Business Research Center (IBRC) at Indiana University’s Kelley School of Business and funded in partnership with the City of Bloomington’s Department of Economic & Sustainable Development, provides an up-to-date look at the current economic conditions of Bloomington relative to 15 similar communities. Since 2000, the BEDC, the City and the IBRC have partnered to publish periodic reports on the state of the Bloomington area economy. The last study was produced in 2007 and the current report marks the fifth publication in this series. The benchmarking approach measures economic indicators, such as education, employment, income and innovation, among others, and compares them to other university cities of a similar size. These comparisons provide an accurate measure of how Bloomington ranks against cities of similar size and demographics. “We use the benchmarking report to help us understand the community’s strengths and weaknesses and to inform us in the planning and implementation of future economic development efforts,” said Ron Walker, President BEDC. “We want Monroe County to be in the top tier among our national peers and we now have a better idea where we do and do not meet that goal,” expressed Walker. The study produced positive results for Bloomington on a number of indicators. With unemployment rates lower than the national average and many of our peers, solid population growth, a diversifying economy, and growth in key sectors, the report shows that Bloomington has weathered the economic recession reasonably well. Bloomington also showed relatively strong numbers in affordability of housing, educational attainment, per capita income growth, and job growth in the health care and social assistance sector. IBRC director Jerry Conover observed that “Although incomes in the Bloomington area continue to lag the state and nation, we’ve experienced impressive income growth over the past several years. Employment growth in industries paying above-average wages is a welcome trend that’s helped our area weather the economic downturn relatively well.” Many of the study’s findings do show the negative impacts of the economic recession that hit the country over the past few years, and Bloomington has not been immune to its impacts. However, despite scoring low on such indicators as wages and personal income compared to national and state peers, the indicators also reveal that the Bloomington economy remains in a solid position and should return to a period of greater job growth as the nation’s economy improves. “This periodic study helps our community to view our local economy within the perspective of other cities like us, and in some cases, of cities we aspire to be like,” said Danise Alano-Martin, the city’s director of Economic & Sustainable Development. “It’s a benchmarking effort not only comparing us to peers, but it’s also a study that helps inform and guide the collaborations between the City and the BEDC and other partners.” Some key findings include: . Monroe County added an average of 800 new jobs each year between 2009 and 2011. . Employment in local life science manufacturers nearly doubled between 2001 and 2009. . In the 2007 study, Bloomington had the second-highest unemployment rate among national peers, but now ranks ahead of six of the communities. . The Bloomington area had an average wage per job of $34,145 in 2009. . Bloomington ranks 8th out of the 16-city national peer set in a county-level Innovation Index, which measures inputs and outputs to innovation (venture capital, broadband penetration, investments in R&D and educational attainment). . In 1990, manufacturing accounted for 15% of Bloomington’s total employment. This share is down to 8% as of 2009. . Housing in Bloomington was the 6th most affordable of the 15 national peers. . Forty percent of Monroe County’s adult population has a bachelor’s degree or higher, ranking in the top 3% of counties nationally. . Bloomington’s per capita personal income (PCPI) ranks as the fourth lowest in the national peer set. However, the annual PCPI growth rate ranked 8th among national peers and 1st in the Indiana set. BEDC and City Economic & Sustainable Development staff will continue to analyze the report findings to better understand where to direct limited resources that can close gaps in economic prosperity and promote the area’s strengths. A Look Inside the 2011 Bloomington Economy can be viewed at the BEDC’s website www.comparebloomington.us. Click on the “2011 Bloomington Benchmarking Report” in the Quick Facts section of the home page.

3 Red Flags when applying for a Mortgage

Daily Real Estate News | Monday, November 07, 2011

More lenders are scrutinizing mortgage applications since the financial crisis fallout, which has triggered fears of borrowers who will default or walk-away from their mortgage or mortgage fraud.

Here are the triggers that may cause the most lender scrutiny of loan applications, according to a recent article at The New York Times:

Large deposits of money: Lenders are required to account for any cash gifts for down payments, such as from relatives. So if a borrower earns $5,000 a month and suddenly deposits an extra $10,000 beyond that, lenders may question where the money came from when applying for a loan.

The home’s new address: Buyers who are purchasing a primary home three hours from where they work may also draw increased scrutiny from lenders, according to The New York Times article. Borrowers may even need a letter from their employer stating that they work from home a few times a week. That’s because lenders may want to ensure the borrower plans to be an owner-occupant and not buying the property to rent or flip, which must be disclosed.

Signing up for new credit cards: Borrowers should avoid taking on extra debt when applying for a loan — so they may want to wait to buy all the new furniture. Extra debt can be a red flag to a lender and could even jeopardize closing on a new home if the debt pushes the borrower’s total debt levels beyond lender-accepted limits.

Source: “Mortgages: Triggers of Lender Scrutiny,” The New York Times (Nov. 3, 2011)