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 HUD unveils proposed changes to mortgage process
Within days, the federal department of Housing and Urban Development plans to unveil sweeping proposed changes to the American mortgage application process and real estate settlement system.
The rule changes are the end-product of HUD's five-year effort to streamline mortgage disclosures, promote comparison shopping by loan applicants, and to stamp out eleventh-hour surprises at closings -- where fees come in hundreds or thousands of dollars higher than initial estimates.
The changes are designed to radically overhaul the current, much-criticized "Good Faith Estimates" (or GFE) disclosures and the "HUD-1" closing procedures.
Among the key changes in the 250-page HUD proposal:
1. Transformation of the GFE into a consumer education and shopping tool. The GFE will now explain in detail to an applicant how a particular loan works, how high monthly payments could rise, disclose any potential fees such as prepayment penalties, and provide information about escrow items.
2. New, strict limits on how much settlement charges can depart from the Good Faith Estimate stage -- within three days of the loan application -- to the HUD-1 closing stage. Total settlement charges could not be more than 10 percent above the initial estimates, absent tightly-defined "unforeseen circumstances" limited to acts of God, war and disasters, among others.
3. The Good Faith Estimate and the HUD-1 forms are aligned with each for easy comparison, with similar categories and graphic displays of loan origination charges and settlement cost items on both.
4. All fees paid to mortgage brokers by a lender in connection with the interest rate charged to the consumer must now be disclosed and listed on the Good Faith Estimate as a "credit to the borrower." Brokers are likely to oppose this strenuously, arguing that competing loan originators -- such as retail bank personnel -- are not required to disclose fees they receive in connection with higher note rates.
5. All settlement agents will now be required to "read aloud" a new "closing script" to mortgage borrowers. The script walks consumers through the various charges on the revised HUD-1, and whether and why they differ from earlier estimates. Finally, the script requires the settlement agent to explain the loan terms and mechanics as stated in the mortgage note itself.
The proposals will have a 60 day period for industry and consumer comment, after which HUD is expected to issue them in final form with a period of months set aside to allow lenders, title companies and attorneys to gear up for the new forms and procedures.
View a comparison between the current and proposed RESPA rules.
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OHFA announces lower homebuying rates for Ohio heros
COLUMBUS--Ohio’s everyday heroes now can receive a lower rate through the Ohio Housing Finance Agency’s (OHFA) First-Time Homebuyer Program. Ohio Heroes offers a 30-year fixed mortgage to first-time homebuyers who are active military personnel or military veterans, firefighters or emergency medial technicians-paramedics, healthcare workers, police officers or teachers.
The borrowers have to be full-time professionals and meet OHFA’s First-Time Homebuyer Program standard mortgage guidelines. The mortgage is being offered at a quarter of a percent under OHFA’s rate for the First-Time Homebuyer Program. In addition, a temporary federal exemption allows veterans who may have owned a home in the past three years to qualify under the First-Time Homebuyer Program.
To learn more about the Ohio Heroes program or to locate a lender in your area, visit www.ohiohome.org.
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Governor Strickland to speak at OAR Legislative Conference
Members planning to attend OAR’s Annual Legislative Conference, March 11-12 in Columbus, will hear Governor Ted Strickland describe his plan to create jobs and revive a sagging economy in Ohio, a proposal he initially outlined in his State of the State address earlier this month. He will speak at the Conference’s opening luncheon set for 11:30 a.m. on March 11. But due to other commitments that afternoon, his address will be given at the start of the luncheon rather than afterwards.
Members should plan to arrive no later than 11:15 a.m. and be in their seats for the Governor’s introduction at 11:30 a.m. sharp. Lunch will be served at the conclusion of the Governor’s remarks, which are expected to be 15 to 20 minutes in duration.
View the Schedule of Events...Register today online.
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'Short Sale' Message Board takes off
Over 2,000 views and numerous posts/replies now reside on OAR's message board on “Short Sales.” This unique forum will allow you to gain new insights on “Short Sales” by viewing the first-hand experiences of others. If you haven't already done so, visit www.ohiorealtors.org/messageboard.aspx to view this unique new communication tool.
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TIME hits mark with coverage
A piece in TIME magazine called "Ignore the headlines" effectively captures why now is a good time to buy. The TIME piece focuses on how today's historically low interest rates create long-term affordability for households who don't wait to buy.
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Legal forum features panel on REO sales
At the Legal Issues Forum, a panel of three prominent real estate attorneys answered questions regarding a variety of issues including short sales and REO properties. Read more...
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Save with Global Premiere
 Global Premiere Services ... Communication Solutions for Your Business
Boost your Business with Special Pricing and receive audio and web conferencing. These solutions can be used everyday, anytime to improve business communications. For more information click here or contact John Mammele at 877-757-0920 or john.mammele@premiereglobal.com.
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Tech Tips
Listings right to your phone...Now you can search MLS properties listed by all REALTORS in an easy to use map interface! Property Maps delivers all of the current listings right to your Blackberry or Windows Mobile Smart phone. Take a closer look…http://www.propertymaps.com/
Use a hidden toolbar in PowerPoint charts...When editing a chart in PowerPoint, you may have trouble selecting the exact portion of the chart you want to change. Instead of clicking around, simply double-click on the chart to activate it, close the datasheet if necessary, and then use the Chart Objects dropdown list that now appears on your main toolbar. Select the chart element you want to work with from the dropdown list instead of trying to accurately click on it.
Reformat in a snap...Let's say you have just finished a document and you decide you don't like the formatting. Don’t worry, you don’t have to go back and reformat each and every paragraph.
Follow the steps below:
- Click on CTRL + A to select the entire document, or select the portion of the document to be changed.
- Then click CTRL + SHIFT + N.
Note: If you accidentally click CTRL + SPACEBAR + N, you get a brand NEW word document and for a minute, you might think you lost your original!
Don't forget OAR's free Tech Hotline service...
866.478.TECH (8324) New EXPANDED hours of operation: M-F: 8 am - 8 pm ... S-S: 10 am - 4pm
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Education
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. Buyer agents need specialized training and knowledge to effectively service customers in today's market. Mar. 14 strictly focuses on Foreclosure and prevention opportunities for your buyer-clients. 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...
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