REALTORS® Warn Consumers of Rising Loan Fraud Scams
C.A.R. Loan Fraud PSA
SOURCE: LeFrancis Arnold, 2012 President – www.LeFrancisArnold.com www.LeFrancis2012.com
California Association of REALTORS®http://videos.car.org/bcpid=987216733001&bckey=AQ~~%2cAAAAzBtBmCE~%2cgKfMMlGoPZI5kU4oXdOB9V1GODmgg1BX&bclid=969642122001&bctid=1550636009001
ASAE Open Letter to Congress re Restrictions on Government Employees Attending Meetings and Conferences
NAR has signed on to a letter being circulated by the ASAE and asks you to consider signing on as well. Over 800 other groups have already signed on including some state and local REALTOR® associations. The letter urges Congress to consider revisions to amendments passed by the House and Senate in two separate bills April 25 that place severe restrictions on government employees attending meetings and conferences. These amendments were included in bills passed by the House and Senate in the last two weeks of April.
The ASAE letter indicates support for the intent of creating greater transparency and accountability in government spending. However, while designed to limit spending on government-sponsored conferences and travel expenses for federal employees, the actual language would have a chilling effect on government employees’ participation in non-governmental meetings and conferences such as those that REALTOR® organizations hold at the federal, state and local levels. A reasonable reading of one section of the amendment is that, for example, if employees from FHA attend a meeting sponsored NAR, no other FHA employee can attend any other NAR event until the next fiscal year. Obviously, the dialogue that takes place between federal agency staff at various NAR sponsored events essential to the development of informed policymaking that facilitates real estate markets.
The ASAE email below includes links to the text of the letter and instructions for how to sign on to the letter electronically. The email also provides more details on the amendments and the issues involved. The deadline for signing on to the letter is May 4.
From: Jim Clarke, ASAE Public Policy
Sent: Wednesday, May 02, 2012 10:40 AM
To: Marcia Salkin
Subject: Update on Government Travel Restrictions
ASAE
Thanks to those of you who have already signed on to ASAE’s open letter to Congress this week. The letter urges Congress to revise legislative language attached to separate bills in both chambers last week that severely restricts government employees from attending meetings and conferences held by associations, nonprofits and other private sector organizations. (Read the amendment language here)
The response from our community has been outstanding. More than 800 organizations have signed on to ASAE’s letter to date. ASAE is collecting signatures through this Friday, May 4 before delivering the letter to Congress. If you have not done so already, please take action and add your voice to the hundreds of associations, nonprofits and for-profit corporations who want to preserve the valuable interchange between government and the private sector at meetings and conferences. If not revised, the provisions passed separately by the House and Senate last week could greatly impact attendance at many meetings and conferences and further erode the important dialogue between federal agencies and the private sector.
You can help ASAE’s efforts on this issue in three ways:
— Take a look at ASAE’s open letter with signatures received as of 8AM this morning. If you have already signed on in support, review your organization’s name and send any changes to Robert Hay at rhay@asaenet.org. If you have not already signed, use the web form or complete this document to add your voice to this effort.
— Share this email with your colleagues, members, business partners or other contacts. These provisions would impact all organizations that hold meetings and conferences and invite government employees, either as speakers or just attendees. There are no types of conferences exempted from these proposed restrictions.
— During this week’s recess, contact your members of Congress in the district and share with them your concern on this issue. Here is a one-pager that outlines the concerns with these provisions.
Thank you again for your strong support on this issue. If you have any questions about these provisions or ASAE’s related advocacy efforts, please contact us at 202-626-2703 or publicpolicy@asaenet.org.
SIGN ON VIA WEB SIGN-ON FORM OR BY COMPLETING THIS DOCUMENT
SOURCE: Jim Clarke, Public Policy American Society of Association Executives
1575 I St. N.W., Washington, DC 20005-1103
Phone: (202) 626-2703; Fax: (202) 371-1673; Email: phpgrassroots@asaenet.org
REALTORS® Praise FHFA for Issuing Short Sale Approval Guidance
WASHINGTON (April 18, 2012) –
The National Association of REALTORS® applauds the Federal Housing Finance Agency (FHFA) for issuing new guidance requiring servicers of Fannie Mae and Freddie Mac loans to speed responses to short sale requests.
The guidelines would require servicers to acknowledge receipt of short sale purchase offers within three business days; respond to short sale requests within 30 days (with a possible 30-day extension); and make a final decision within 60 days of receiving purchase offers.
“As the leading advocate for housing and homeownership, NAR knows that delays in approving short sale requests remain a significant challenge for REALTORS® and consumers and often result in canceled contracts and the property going into foreclosure,” said NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami. “REALTORS® greatly appreciate FHFA’s efforts in establishing a timeframe for responding to sellers and potential buyer offers to help streamline the short sales process.”
NAR has long urged the lending industry to improve the process for approving short sales. When a family is absolutely unable to stay in their home, a short sale minimizes the negative impact on sellers and communities, and NAR believes that streamlining the approval process will reduce the amount of time it takes to sell the property, improve the likelihood that the transaction will close, and reduce the number of foreclosures. Short sales also help stabilize home values and neighborhoods by keeping homes occupied, which benefits the housing market and aids in the recovery.
Veissi praised FHFA Acting Director Edward DeMarco for responding to the concerns of consumers and REALTORS® regarding the ongoing delays in the approval process and the negative impact that slow response times are having on buyers, sellers, lenders, and the housing market.
NAR also thanked Sens. Lisa Murkowski (R-Alaska), Scott Brown (R-Mass.) and Sherrod Brown (D-Ohio) for introducing S. 2120, and Reps. Tom Rooney (R-Fla.) and Rob Andrews (D-N.J.) for introducing H.R. 1498, proposed legislation to reduce delays in approving short sale transactions.
“Their leadership on this issue helped raise the attention needed to make the short sales process more efficient. While these new guidelines will hopefully help close short sale transactions at higher rates, we believe legislation is still needed to impose mandatory deadlines on all loan servicers,” said Veissi.
Implementation of the new guidelines should begin after June 15, 2012. For more information, visit www.realtor.org/topics/short-sales.
The National Association of RealtorsÒ, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.=
SOURCE: Chris Gosselin, Regional Political Representative AK, CA, CT, GU, HI, MA, ME, NH, NV, RI & VT
National Association of Realtors® – CGosselin@realtors.org
Chris Gosselin’s Brief Update from DC to State and Local GAD’s
Hello from Washington. While Congress has been notably quiet about big picture items that we are continuing to monitor such as tax policy and the future of the secondary mortgage market, there are some things moving here in DC that I wanted to update you about.
First is the taxation of forgiven debt – there is now legislation in the House that would extend the provision for two years and another provision that would extend it for one year. Obviously two years is better than one, but we are not taking a position on which one goes forward. More information about the issue can be found on our website: Will I Pay Tax on Short Sales, Foreclosures, or Loan Modifications?
There have been several questions about the Bank of America announcement about their deed-for-lease pilot program and our position. I’ve attached a summary from B of A that outlines their proposal.
You may have gotten questions about the AG Mortgage Settlement and its impact on the real estate market. We are still going through the full settlement but we have put together a brief document that outlines the top things we are watching: National Mortgage Settlement and Realtors – Five Quick Takeaways.
We also just sent regulators a letter updating our position on the REO bulk sales initiative now that we have some more guidance on the direction of the program. It’s four pages and should answer most questions about what NAR is doing on this issue – attached to this email as well. It also references the Bank of America proposal above.
Rally update: If you are getting any questions about the Realtor Rally at the midyear meetings, our website www.realtorrally.org is up and running and has answers to most questions that you or your members may have. If there is additional information needed, there is a web form on the site that is monitored by our staff in DC planning the rally. Of course, feel free to get in touch with me if I can answer any questions as well.
SOURCE: Chris Gosselin, Regional Political Representative AK, CA, CT, GU, HI, MA, ME, NH, NV, RI & VT
National Association of REALTORS® — CGosselin@realtors.org
C.A.R. applauds California Congressional members urging FHFA to refrain from implementing bulk REO sales in California
For release:
April 9, 2012
LOS ANGELES (April 9) – California Congressman Gary Miller (R-Brea), along with 18 other members of California’s congressional delegation, issued a letter last week to Edward J. DeMarco, acting director of the Federal Housing Finance Agency (FHFA), urging DeMarco to refrain from implementing the agency’s “REO Initiative” pilot program in California because it would negatively impact California’s housing market and raise costs for taxpayers.
The REO Initiative pilot program calls for the sale of more than 600 Fannie Mae-owned foreclosed homes in Los Angeles and Riverside counties to institutional investors.
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
“We commend the California congressional delegation’s letter to Mr. DeMarco,” said C.A.R. President LeFrancis Arnold. “They clearly understand that this program may be a viable solution in states where there is a large inventory of unsold foreclosures. However, carrying out this plan in California would potentially further delay a housing recovery and, ultimately, result in greater losses for the taxpayer,” said Arnold.
The letter states, “We are concerned that including California counties in this initiative is in direct conflict with your duty as conservator to preserve and conserve the Company’s assets… In California, there is no question that disposing properties through bulk sales will yield a lower return for the GSEs and taxpayers than through traditional disposition methods. This means that such a program will increase losses to the taxpayer and GSEs,” the letter concludes.
The 19 California Congressional members who backed the letter include Gary Miller, Jerry Lewis, Ken Calvert, Jeff Denham, Elton Gallegly, Dana Rohrabacher, Buck McKeon, Duncan Hunter, Brian Bilbray, Mary Bono Mack, Susan Davis, Brad Sherman, Joe Baca, Grace Napolitano, Judy Chu, Jim Costa, Adam Schiff, Barbara Lee, and Howard Berman.
Leading the way…(r) in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org
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SOURCE: http://www.car.org/newsstand/newsreleases/2012releases/fhfaletter
Latest Updates from FHA
This is the HUD national homeownership center reference guide mailing list for real estate industry professionals that are interested in updates to HUD Mortgagee letters, notices and guidebooks, & FHA Housing Industry Training.
Please visit the homepage at:
http://www.hud.gov/offices/hsg/sfh/hsgsingle.cfm
Servicing lenders can visit HUD’s National Servicing Center at:
http://www.hud.gov/offices/hsg/sfh/nsc/nschome.cfm
Please see the latest update from FHA at:
http://portal.hud.gov/hudportal/documents/huddoc?id=fhacomcgJan2312Final.pdf
SOURCE: Jerrold H. Mayer
Email: Jerrold.H.Mayer@HUD.GOV
List: HOMEOWNERSHIP-L@HUDlist.HUD.gov
We’ll Take All the HARP We Can Get
There are two questions on everyone’s minds surrounding the new HARP or HARP Phase II:
1. Will it work this time?
2. Do I qualify???
To the first question, it’s widely known the original Home Affordable Refinance Program (HARP) rolled out in 2009 to help struggling homeowners refinance their home wasn’t a huge success. The Federal Housing Finance Agency (FHFA) estimates it helped 894,000 homeowners refinance in the almost three years since its inception.
However, the game changers for HARP Phase II are the elimination of the 125 percent LTV cap requirement in the original HARP and FHFA waiving some stringent requirements (a.k.a. warranties and representations) placed on the lenders and servicers to “buy-back” the refinanced loans should they go bad. Waiving those requirements paves the way for this program to actually help homeowners.
Currently, there are an estimated over 10 million homeowners underwater in the U.S. with over 2 million borrowers in CA alone (According to CoreLogic’s Negative Equity report for Q2-2011). This hidden force is weighing down the housing market during a time when relief is much needed for many struggling with job losses, pay cuts, or other factors hurting confidence in the marketplace. Economist Mark Zandi predicts the changes to HARP could potentially help 1.6 million homeowners refi their loans by the end of the program (by the way – it ends December 31, 2013).
So any help is helpful, right?
To the second question, I want to share some key requirements for the borrowers that would qualify under the new HARP plan announced Monday October 24, 2011:
1. The mortgage needs to be owned or guaranteed by Fannie or Freddie. (Sold to Fannie Mae or Freddie Mac on or before May 31, 2009). You can check to see if your loan is Fannie Mae or Freddie Mac.
2. (Considered by many to be the most important part of the plan) as mentioned above, the LTV is no longer capped at 125% LTV for fixed-rate mortgages (it is capped at 105% LTV for adjustable-rate mortgages). For HARP Phase II, the LTV only needs to be 80% or higher as HARP is intended for borrowers who do not qualify for the traditional refinancing model.
3. The mortgage cannot have been refinanced through HARP in the past.
4. The mortgage cannot have had a late payment in the last 6 months and no more than one late payment in the last 12 months. Further clarification – late is considered over 30 days by most lenders according to FHFA.
5. New appraisals are not required for HARP refis as long as there is a reliable AVM (automated valuation model) for estimating the value provided by Fannie or Freddie.
If the borrower qualifies for the new HARP plan and refinances, at current mortgage rates this could mean saving as much as a couple hundred dollars each month on their mortgage payment, which is always good. Just look at mortgage rates on the 30-year fixed rate mortgages at 4.1% for the last couple of weeks and 1-year ARMs at 2.9%.
C.A.R. applauds this new attempt to help struggling homeowners and has been a long-time proponent and supporter of removing the 125 percent LTV ceiling in the previous HARP. It’s great to see the Association Leadership’s efforts come to fruition here. Final details of the program to be released on November 15, 2011.
Here are some good reads on the subject. Happy refinancing people!
The HARP Phase II press release from FHFA
Home Lending Revamp Planned from the Wall Street Journal
Twelve Questions from Obama’s Refi Plan from the Wall Street Journal
Obama’s Mortgage Refinancing Effort: This Time It’s Different from the Atlantic
SOURCE: Sara Sutachan, Author, CAR Blog October 26, 2011, Filed under: Market Data
http://blog.car.org/2011/10/well-take-all-the-harp-we-can-get/#more-1930
Conforming Loan Limits at Stake
For release:
June 23, 2011
Drop in conforming loan limits would raise cost of housing financing, hamper housing recovery
LOS ANGELES (June 23) – More than 30,000 California families will face higher down payments, higher mortgage rates, and stricter loan qualification requirements if conforming loan limits on mortgages backed by the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac are reduced beginning October 1, 2011, according to analysis by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
“By reducing the conforming loan limit, thousands of California home buyers will be shut out of homeownership,” said C.A.R. President Beth L. Peerce. “The higher mortgage loan limits are critical to providing liquidity in today’s housing market and are essential to our housing recovery. We urge Congress to maintain the current limits and make them permanent to provide homeowners and home buyers with affordable financing and help stabilize local housing markets.”
Barring Congressional action, the maximum FHA, Fannie Mae, and Freddie Mac conforming loan limit will decline to $625,500 beginning Oct. 1, 2011, from the current $729,950 limit, though the majority of counties will fall far below the $625,500 maximum. The conforming loan limit determines the maximum size of a mortgage that FHA, Fannie Mae, and Freddie Mac government-sponsored enterprises (GSEs) can buy or guarantee. Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan and require a higher down payment, increasing the monthly payment and negatively impacting housing affordability for California home buyers.
Under the new GSE loan limits, Monterey County would see the greatest drop in the loan limit at $246,750, followed by San Diego ($151,250), Sonoma ($141,550), Solano ($140,500), and Napa ($137,500) counties. Under the new FHA loan limits, Monterey County would see the greatest drop in the loan limit at $246,750, followed by Merced ($201,450), Riverside ($164,650), San Bernardino ($164,650), Solano ($157,300), and San Diego ($151,250) counties.
C.A.R. and the NATIONAL ASSOCIATION OF REALTORS® (NAR) have long advocated making permanent higher conforming loan limits. As a result of C.A.R.’s and NAR’s efforts, in 2008, Congress temporarily raised the conforming loan limits from $417,000 to $729,750 and has extended them annually through fiscal year 2011.
Regionally, Marin County would be impacted the most, with more than 12 percent of home sales rendered ineligible under the lower GSE loan limit, followed by Contra Costa (11.5%), San Mateo (10.7%), San Francisco (9.9%), Monterey (8.8%), San Diego (8.2%), Sonoma (7.9%), and Santa Clara (7.8%) counties. Under the lower FHA loan limit, San Francisco County would be impacted the most, with more than 14 percent of home sales rendered ineligible, followed by Santa Cruz (13.9%), Orange County (13.3%), Marin (13.2%), San Mateo and Ventura (both at 12.7%), Santa Clara (12.2%), San Diego (11.9%), Alameda (11.8%), Riverside (11.5%), and Contra Costa (11%) counties.
Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
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SOURCE: http://www.car.org/newsstand/newsreleases/2011newsreleases/loanlimits/
The Real Estate Industry Today, Tomorrow, Forever
The future of Real Estate seems fuzzy at times — networking, automation, social media, the internet; who will attempt to navigate this trillion dollar industry. It was about 30 years ago when real estate was local but neighborly, mostly. Century 21 had a substantial dominance in the residential real estate market. At one time, we owned five local franchises; the theme was national but neighborly and the offices were small in numbers averaging about 30 agents. Multiple listings were in a book that was delivered and about the time you got the book, most of the properties were sold by an agent in that office. I can remember going to present an offer to the seller at his home; there were ten agents with offers, all presenting their client’s offer to the seller. I haven’t done that in a while. We were in the beginning of a recession 30 years ago and interest rates began to rise. I was young with a young family; my second son Jason, now in the business, was not born yet. Time to get creative as interest rates began to rise. Over the next three years, interest rates would get to 18% for an FHA loan and even with prices low the market began to dry up and agents left the business. Loans were still assumable, for the most part, until congress threw REALTORS® under the bus and allowed banks to call most loans due on sale. I remember the All Inclusive Deed of Trust and the Contract of Sale that were both insurable by title insurance companies. I did my first development project around that time, got my Insurance Agent license, and my NASDAQ Broker license; I was already a licensed General Contractor.
The early 80′s brought new automation. Before cell phones, we had pagers. I remember stopping at a pay phone or waiting until I got back to the office to return or make phone calls. I remember our first computer, but before the computer we had a machine that would send us updates on listings. The computer was a Honeywell computer that had front and back office. The fax machine and the cell came soon after. The 80′s to me brought substantial innovation and automation, so I thought. Interest rates began reseeding around ’85 and the market began to improve. Agents began to come back into the business. the late 80′s brought more problems: a new recession, then another one by the mid 90′s, and one more by the mid 2000′s which was the worst one ever. I was told that we had one in the early 70′s while I was college. Things seem to keep repeating, including the advancement of new technology; there is a recession every few years and that seems to have been the case.
The survival of the real estate industry seems to rely on independent licensees and brokers working with organized real estate like the REALTOR® organization with over a million members, nationally. The REALTOR® organization is a three-way agreement between the State, National, and local Association of REALTOR®. By working together, we can fight for legislation that will allow us to stay in business. Is homeownership viable in today’s mobile economy? Is it important to protect the concept of homeownership? Should people buy homes as a long-term investment, pay for it, and enjoy the benefits it brings years later? I still believe that homeownership is one of the most valuable assets that a person can own. Please, let’s protect the true value of homeownership. The Mortgage Interest deduction must remain untouched, write your Congressperson today!
AUTHOR: LeFrancis Arnold, CAR 2011 President-Elect, LACBOR Past President — http://www.LeFrancisArnold.com
Do It For You, Do It For Your Clients, Do It For America
What do we ask of you? Let me tell you. It will affect 47 million middle-class Americans who have a mortgage. It will affect the home prices of 75 million Americans who own their home. It will affect the neighborhoods and communities built on home ownership.
So what am I talking about?
We need you — our 1 million members of the National Association of REALTORS® — to let Congress know that trimming the mortgage intrestest deduction will hurt the middle class, who have been squeezed by this economic recession. It will hurt the housing market, which generates 2.5 million jobs and has a strong history of leading our country out of recessions.
I am passionate about protecting the dream of home ownership, the greatest way to a keep our families strong, and our nation stronger.
So, please, do it for you, do it for your clients, and do it for America! Tell Congress to preserve and protect the Mortgage Interest Deduction. Click here now to take action!
SOURCE: Moe Veissi, 2011 NAR President-Elect, http://voicesofrealestate.blogs.realtor.org/
