|
 Most current information on the Economic Stimulus package...
Below is the most current information regarding the recently passed Economic Stimulus package signed by the President on Feb. 13, 2008. Although it's not real estate specific, it explains the Package and who gets rebates, etc.
- Low Income/Social Security Recipients Fact Sheet
- News Release
- Stimulus Payments Fact Sheet
You may also go to irs.gov for the most recent information.
back to top
GSEs require higher downpayments in 'declining markets'
REALTORS and Board executives have recently learned about policies of the government sponsored enterprises (GSEs)--Fannie Mae and Freddie Mac--that require reducing the maximum loan-to-value (LTV) ratio for loans they purchase by 5 percentage points if the property is located in a “declining market.” For example, if the GSE program would otherwise permit a 97 percent loan, the maximum loan-to-value would be 92 percent for properties located in declining markets. This means, in that example, that if the down payment would otherwise be 3 percent, it would be increased to 8 percent for properties in declining markets. Freddie’s policy is long-standing. Fannie Mae had a similar long-standing policy which had been suspended in Jan. 2006. The policy was recently reinstituted in light of challenging market conditions and is effective for loans with application dates on or after Jan. 15, 2008.
These policies will make home buying less affordable and some have questioned the disparate impact of the policies on minorities and lower income areas. NAR has raised concerns about these policies with the GSEs and both are expected to issue additional clarification.
The policies are designed to result in safer loans in today’s market environment and Fannie and Freddie argue that lenders and borrowers both benefit. Their federal regulator, the Office of Federal Housing Enterprise Oversight (OFHEO), supports these policies which they believe will improve the financial condition of the GSEs.
Here is some more detail about the GSEs’ policies:
Fannie Mae...Fannie’s underwriting software (Desktop Underwriter or DU) will generate a message to the lender if data used by Fannie indicate the property appears to be in a market with declining home prices, generally capping the LTV at 5 percentage points less than would otherwise apply. But even where the software generates that message, lenders may resubmit the application without the lower LTV, but only if the lender has evidence that the property is not in a declining market. Lenders must apply the same policy, reducing the amount of the LTV and increasing the down payment, for loans manually underwritten or underwritten through automated underwriting software other than DU.
Freddie Mac...Freddie’s underwriting software (Loan Prospector or LP) does not currently generate a “declining markets” message, but the same substantive policy applies to all loans lenders sell to this GSE. Freddie’s policies make clear that lenders should be aware of market values and that lenders are responsible for the “quality, integrity and accuracy of the appraisal.” If the appraiser or lender determines the property is in a declining market, the otherwise applicable maximum LTV ratio is reduced by 5 percentage points (and, of course, the down payment increases by that amount).
In summary, lenders who sell mortgages to the GSEs have the ultimate responsibility, as they always have, for determining whether the property is in a declining market. But, based on a factually-supported finding by a lender that a particular property is not in a declining market, both of the GSEs will purchase the loan without the 5 percentage point reduction in the LTV. NAR is concerned that some lenders may act unnecessarily cautiously and identify too many properties as being in declining markets. This is especially a concern under the Fannie Mae system which flags individual properties as possibly being in declining markets.
What can REALTORS do?...Members are well-positioned to provide important information about market values to help both lenders and appraisers determine whether properties are, in fact, located in declining markets. There is absolutely nothing wrong with asking lenders and appraisers to reconsider the comparables, consider better comparables, or consider additional information supplied by a REALTOR. We all recognize that accurate appraisals are crucial to mortgage lending systems and have strong policy against anyone attempting to exercise undue influence or coercion in connection with an appraisal. Making sure lenders and appraisers have the most accurate and up-to-date information is in everyone’s interest--information that can provide critical assistance to many home buyers. REALTORS can make the difference between a disappointed shopper and a new homeowner.
back to top
Legal issue...
Maine's 'Open MLS' ballot initiative dies...A ballot initiative in Maine that attempted to create a statewide residential multiple listing service accessible to both real estate practitioners and the general public will not be on the State’s November ballot because the proponents of the initiative failed to gather enough signatures.The signature gathering process was reportedly funded largely by out-of-state entities.
back to top
On the lighter side: A short concise view of where the economy is headed...
After listening to economists and experts conjecture about the direction of the economy, please enjoy this humorous summary:
What we have here is a continuing, but slowing, upward drive on the downside--which is better than a downward thrust on the upside, or even a sideways move on a U-shaped trough.
But, as the downside bottoms out, the resulting flat side of the up curve will strengthen any sideways movement still apparent in the recovery.
However, if the overshoot of incline produces a rising, but negative, slowdown in acceleration of the leading indicators, the resulting outflow could mean additional pressure from all sides of a circular demand curve.
(Source: RealTrends and Dominion Enterprises)
back to top
Save with Pearl Insurance...
 Pearl, serving the real estate community since 1950, is one of the nation's leading providers of E & O insurance. Their E & O program is underwritten by Greenwich Insurance Company and Indian Harbor Insurance Company, members of the XL Capital Insurance Group.
Errors and Omissions Liability Insurance--Since 1990, Pearl Insurance has been offering comprehensive insurance coverage to OAR members. OAR members will enjoy an A+ A.M. Best rated E & O program, easy access to AHS Home Warranty Services, and a variety of life and health products that include Dental, Long Term Disability, AD and D, Level Term Life, and Short Term Medical.
For more information about Pearl's insurance programs, please contact a Pearl representative at 1.800.289.8170. Or visit its Web site at: John P. Pearl and Associates, Ltd
back to top
Tech Tips...
Recently used files list in Word...
When working in Microsoft Word, you can see the last four documents that you have opened by selecting FILE. The last four documents appear at the bottom of the menu. You can change this feature to include MORE documents OR you can disable the option all together. Follow the steps below:
- Click TOOLS
- OPTIONS
- GENERAL
- Under recently used files, arrow up or down the number of files that you want to appear.
- If you want to disable the feature, uncheck the box
Not sure who owns the number on your Caller ID?...With so many people using cell phones, it is hard to tell who is who these days. You can visit the web site below to see if the number is indeed a mobile number and the location of where the account was originated. For a fee, you can get more information such as the callers name and address. (www.reversemobile.com)
Create a task from an e-mail in Outlook...
- Drag the message that you want to convert to a task to the Tasks button in the navigation pane. If the message has an attachment, you have to drag that separately.
- The TASK window will then open, allowing you to select the options that you want.
back to top
Education...
CI 102: Market Analysis for Commercial Investment Real Estate...This course, to be held Mar. 3-7, will analyze historical trends and existing data to assess both current and future market conditions. Economic Base Analysis, an important starting point for forecasting the future of a market area, will be introduced. Learn how supply and demand factors impact a market forecast, as well as gain insight into site feasibility, market dynamics and market pricing. (Note: CI 101 is a prerequisite for this course.) Sign-up today...
ABR Designation program...Buyer agents need specialized training and knowledge to effectively service customers in today's market. The program, scheduled for Mar. 12-14, will help you gain a competitive edge in this growing market. Sign-up today...
Post Licensure Course for Salespeople...OAR will offer the 10-hour Post Licensure course March 19-20 at OAR headquarters in Columbus. This course is required for all newly-licensed salespeople within the first year of licensure. Early-bird reqistration applies. No c.e. offered. Sign-up today...
Attacking & Defending an Appraisal in Litigation...This 14-hr. course will cover common mistakes made in appraisals and how to testify if called upon. Various standards and ethical rules that are commonly misunderstood are also highlighted and explained. Dates: March 26-27 in Columbus. Sign -up today...
30 hours online...Take your real estate continuing education hours online. You can take 3, 6 or all 30 hours in any combination...Sign-up today...
back to top
|
