News reports that the federal government is backing away from its plan to permit eligible borrowers to monetize the first-time homebuyer tax credit are off the mark, a spokesperson for the U.S. Department of Housing and Urban Development says.
"The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site," Lemar Wooley, a HUD spokesperson, told REALTOR® Magazine Wednesday afternoon.
Under the guidance that's under development, state agencies and other HUD-approved entities would be able to provide short-term bridge loans that households could use to help with their downpayment. The loans would be repaid with the proceeds from the households' federal tax credit.
The loans were announced on the opening day of NAR's 2009 Midyear Legislative Meetings in Washington, D.C., last week. In his announcement, HUD Secretary Shaun Donovan said guidance would be issued shortly.
When the guidance is released, it is expected to cover eligible lenders and set parameters for loan terms and repayment.
Source: REALTOR® Magazine Online
Thursday, May 21, 2009
Saturday, May 16, 2009
Uniform Short-Sales Guidelines in the Works
Extensive delays in the short-sale process has caused many buyers to go elsewhere and have left would-be sellers with no option but foreclosure. But the picture is improving.
This week the U.S. Treasury announced that it would be providing incentives for borrowers and mortgage services to pursue short sales and other foreclosure alternatives. The program includes a standard short-sales process flow, minimum performance timeframes, and standard documentation, the U.S. Treasury says.
(More information is available on the Treasury Web site and in this PDF document posted at REALTOR.org.)
The incentives and process guidelines are part of a larger initiative called Making Home Affordable, which helps home owners refinance to avoid losing their home.
“NAR is pleased that the government is stepping in to help prevent foreclosures by streamlining the short-sale and deeds-in-lieu process,” NATIONAL ASSOCIATION OF REALTORS® President Charles McMillan said in a statement. “NAR has been calling for uniform short sales procedures and other initiatives that will help today’s home owners in challenging economy.”
More Collaboration Needed
A panel of experts at the 2009 REALTORS® Midyear Legislative Meetings this week agreed with NAR's position that more needs to be done to streamline short sales.
“It’s hard to find the right person to talk to, you send in multiple forms multiple times, you’re not sure if the forms were received or processed correctly,” said Marcel Bryar, deputy general counsel and vice president at Fannie Mae.
To reach a set of standards that suits everyone, the government should collaborate with lenders, the real estate industry, and advocacy groups, he said.
“The process is going to take a while," said David Knight, head of the short sales division at Wells Fargo. "Getting them all to understand what we can all live and deal with is not going to be easy, but that is exactly what’s going to have to happen.”
Panel participants applauded the Obama administration’s efforts to streamline the short sales process, and encouraged the real estate industry to get more involved in formulating this standard.
“It’s going to take some thorough intervention,” said Boyd Campbell, a Washington, D.C.-area REALTOR®. “That’s why I think it’s so important for RPAC to get involved and make sure NAR has the resources to go in and help resolve this problem. This doesn’t just impact us as practitioners. It also impacts all of our homes and communities.”
—Brian Summerfield, REALTOR® Magazine
This week the U.S. Treasury announced that it would be providing incentives for borrowers and mortgage services to pursue short sales and other foreclosure alternatives. The program includes a standard short-sales process flow, minimum performance timeframes, and standard documentation, the U.S. Treasury says.
(More information is available on the Treasury Web site and in this PDF document posted at REALTOR.org.)
The incentives and process guidelines are part of a larger initiative called Making Home Affordable, which helps home owners refinance to avoid losing their home.
“NAR is pleased that the government is stepping in to help prevent foreclosures by streamlining the short-sale and deeds-in-lieu process,” NATIONAL ASSOCIATION OF REALTORS® President Charles McMillan said in a statement. “NAR has been calling for uniform short sales procedures and other initiatives that will help today’s home owners in challenging economy.”
More Collaboration Needed
A panel of experts at the 2009 REALTORS® Midyear Legislative Meetings this week agreed with NAR's position that more needs to be done to streamline short sales.
“It’s hard to find the right person to talk to, you send in multiple forms multiple times, you’re not sure if the forms were received or processed correctly,” said Marcel Bryar, deputy general counsel and vice president at Fannie Mae.
To reach a set of standards that suits everyone, the government should collaborate with lenders, the real estate industry, and advocacy groups, he said.
“The process is going to take a while," said David Knight, head of the short sales division at Wells Fargo. "Getting them all to understand what we can all live and deal with is not going to be easy, but that is exactly what’s going to have to happen.”
Panel participants applauded the Obama administration’s efforts to streamline the short sales process, and encouraged the real estate industry to get more involved in formulating this standard.
“It’s going to take some thorough intervention,” said Boyd Campbell, a Washington, D.C.-area REALTOR®. “That’s why I think it’s so important for RPAC to get involved and make sure NAR has the resources to go in and help resolve this problem. This doesn’t just impact us as practitioners. It also impacts all of our homes and communities.”
—Brian Summerfield, REALTOR® Magazine
Homes May Be Undervalued Today
After dropping for two years, home prices appear to be bottoming out, and any further declines would be an overcorrection, NAR Chief Economist Lawrence Yun told thousands of practitioners at the REALTORS® Midyear Legislative Meetings in Washington, D.C., on Thursday.
The median national home price today is about $169,000, down almost 14 percent from a year ago and an estimated 30 percent from its peak. Today’s prices are justified by the fundamentals of the economy and may even represent an undervaluation, Yun said.
Lender Policies Hinder Recovery
Distressed sales, which today comprise about 50 percent of transactions nationwide, are creating market distortions in otherwise stable neighborhoods. “We’re only capturing transaction prices,” he said, and those prices might be 20 percent to 25 percent below actual values. For that reason, it’s possible that widely cited projections that a third or more of homeowners are underwater might be off the mark, he said.
The consequences of these missed projections could be huge. Lenders, shying away from refinancing mortgages of troubled owners, exacerbate the downward spiral of homeowners’ financial position and that, by extension, hurts the broader economy.
Contributing to the problem is the lack of reasonably priced financing for higher-cost homes at a time when declining prices, low rates, and the home buyer tax credit are helping the entry-level market.
Indeed, while housing overall is at a 9.5 month supply, down from double digits not that long ago, homes above $729,750—the threshold for jumbo loans—face a 40-month supply.
Key Test
By summer, all of the incentives that have been put into place by the government will have had several months to work, Yun said. If sales start picking up significantly, then prices should stabilize and trigger a broader economic recovery.
If sales don’t show a significant response, then the federal government might have to look at another big injection of funds into the economy, something no one has an appetite for.
Yun’s forecast reflects the brighter scenario: “My projection is home sales will be 10 to 20 percent higher the second half of this year than last year and we will come out of this recession in 2010,” he said.
—Robert Freedman, REALTOR® Magazine
The median national home price today is about $169,000, down almost 14 percent from a year ago and an estimated 30 percent from its peak. Today’s prices are justified by the fundamentals of the economy and may even represent an undervaluation, Yun said.
Lender Policies Hinder Recovery
Distressed sales, which today comprise about 50 percent of transactions nationwide, are creating market distortions in otherwise stable neighborhoods. “We’re only capturing transaction prices,” he said, and those prices might be 20 percent to 25 percent below actual values. For that reason, it’s possible that widely cited projections that a third or more of homeowners are underwater might be off the mark, he said.
The consequences of these missed projections could be huge. Lenders, shying away from refinancing mortgages of troubled owners, exacerbate the downward spiral of homeowners’ financial position and that, by extension, hurts the broader economy.
Contributing to the problem is the lack of reasonably priced financing for higher-cost homes at a time when declining prices, low rates, and the home buyer tax credit are helping the entry-level market.
Indeed, while housing overall is at a 9.5 month supply, down from double digits not that long ago, homes above $729,750—the threshold for jumbo loans—face a 40-month supply.
Key Test
By summer, all of the incentives that have been put into place by the government will have had several months to work, Yun said. If sales start picking up significantly, then prices should stabilize and trigger a broader economic recovery.
If sales don’t show a significant response, then the federal government might have to look at another big injection of funds into the economy, something no one has an appetite for.
Yun’s forecast reflects the brighter scenario: “My projection is home sales will be 10 to 20 percent higher the second half of this year than last year and we will come out of this recession in 2010,” he said.
—Robert Freedman, REALTOR® Magazine
Tuesday, May 12, 2009
Tax Credit Can Be Used for Down Payment !
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.
Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.
“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..
He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
Other Solutions for Today's Market
During his address at the summit, Donovan went on to say that the Obama administration plans to further stabilize the housing market. “I do think we have some early signs that the market overall is stabilizing,” Donovan says. “Since January we’ve seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate.”
The morning session included a panel discussion that was moderated by CNBC’s Ron Insana. Panelists examined cutting-edge solutions necessary to promote and preserve homeownership and real estate development, stimulate the economy, and protect the nation’s taxpayers. They also shared their ideas on what the role and responsibility of the federal government is in the revitalization effort.
“Right now the Federal Reserve is the market,” said panelist Jay Brinkman, chief economist for the Mortgage Bankers Association. “What will be the effect when the Fed stops buying?” Brinkman explained that an exit strategy must be planned for the long-term; the federal government cannot continue to support the mortgage markets indefinitely.
“We are thrilled that so many high-caliber individuals were able to join us today at this important meeting to promote stability in the housing market and the U.S. economy,” said NAR President Charles McMillan. “We look forward to an ongoing dialogue and action toward this goal, during our midyear meetings this week and beyond.”
The real estate summit is part of the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo. During the week ending May 16, more than 8,500 REALTORS® will attend meetings, visit lawmakers and inspire action on Capitol Hill.
Source: NAR
Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.
“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..
He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
Other Solutions for Today's Market
During his address at the summit, Donovan went on to say that the Obama administration plans to further stabilize the housing market. “I do think we have some early signs that the market overall is stabilizing,” Donovan says. “Since January we’ve seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate.”
The morning session included a panel discussion that was moderated by CNBC’s Ron Insana. Panelists examined cutting-edge solutions necessary to promote and preserve homeownership and real estate development, stimulate the economy, and protect the nation’s taxpayers. They also shared their ideas on what the role and responsibility of the federal government is in the revitalization effort.
“Right now the Federal Reserve is the market,” said panelist Jay Brinkman, chief economist for the Mortgage Bankers Association. “What will be the effect when the Fed stops buying?” Brinkman explained that an exit strategy must be planned for the long-term; the federal government cannot continue to support the mortgage markets indefinitely.
“We are thrilled that so many high-caliber individuals were able to join us today at this important meeting to promote stability in the housing market and the U.S. economy,” said NAR President Charles McMillan. “We look forward to an ongoing dialogue and action toward this goal, during our midyear meetings this week and beyond.”
The real estate summit is part of the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo. During the week ending May 16, more than 8,500 REALTORS® will attend meetings, visit lawmakers and inspire action on Capitol Hill.
Source: NAR
Thursday, May 7, 2009
Breathtaking Townhouse! Minutes to South Beach
www.vacationhomerentals.com/38671
Come stay at the heart of coconut grove with everything the vibrant town has to offer. Walk to shops, restaurants, bars, movie theaters and boating.
Enjoy the city in a spacious townhouse with state of the art amenities. Including a full office setup including printer/copier/fax and high speed internet. Sleeps 8 individuals but is also perfect for just a few. There is a spacious patio with a BBQ grill ready for backyard cookouts and a full kitchen for everyday meals. The townhouse also has a 50 in. plasma TV with HD digital cable, a DVR recorder and even an XBox 360 for viewing DVD's and for the kids' video games.
Come enjoy the heart of Miami with all the amenities you can imagine and proximity to all major attractions including a 10 minute drive to South Beach, The Miami International Airport, Coral Gables, Brickell, Downtown, Bayside, South Miami (Sunset Place, University of Miami) and Kendall (Dadeland Mall). All this for the fraction of the cost of a hotel room.
Come stay at the heart of coconut grove with everything the vibrant town has to offer. Walk to shops, restaurants, bars, movie theaters and boating.
Enjoy the city in a spacious townhouse with state of the art amenities. Including a full office setup including printer/copier/fax and high speed internet. Sleeps 8 individuals but is also perfect for just a few. There is a spacious patio with a BBQ grill ready for backyard cookouts and a full kitchen for everyday meals. The townhouse also has a 50 in. plasma TV with HD digital cable, a DVR recorder and even an XBox 360 for viewing DVD's and for the kids' video games.
Come enjoy the heart of Miami with all the amenities you can imagine and proximity to all major attractions including a 10 minute drive to South Beach, The Miami International Airport, Coral Gables, Brickell, Downtown, Bayside, South Miami (Sunset Place, University of Miami) and Kendall (Dadeland Mall). All this for the fraction of the cost of a hotel room.
U.S. SENATE VOTES TO CREATE NATIONWIDE MORTGAGE FRAUD TASK FORCE
MODELED AFTER MAYOR CARLOS ALVAREZ'S MORTAGE FRAUD TASK FORCE
(MIAMI, May 6, 2009) - Today, the U.S. Senate voted 91 to 5 on Bill S.896 Helping Families Save Their Homes Act of 2009. Section 302 of the bill, which was introduced by U.S. Senator Bill Nelson and Congressman Kendrick Meek of Florida and amended onto Bill S.896, establishes a Nationwide Mortgage Fraud Task Force within the U.S. Attorney General's Office modeled after Miami-Dade County Mayor Carlos Alvarez's Mortgage Fraud Task Force. Bill S.896 was introduced by U.S. Senator Christopher J. Dodd of Connecticut. In the U.S. House of Representatives, Bill H.R.1106 was introduced by Congressman John Conyers, Jr. of Michigan in February 2009.
"Mortgage fraud is one of the fastest growing crimes in Miami-Dade County and the entire country," said Mayor Alvarez. "Last year, more than 1,000 mortgage fraud cases were reported in our community and 63,000 cases nationwide. This new bill will help all communities reduce mortgage fraud and prevent victimization. I want to thank my Task Force Chairman Glenn Theobald and all of the federal legislators for this new legislation."
The Nationwide Mortgage Fraud Task Force, which will operate under the U.S. Attorney General, will address mortgage fraud in the U.S. The Attorney General shall provide the Task Force with the appropriate staff, administrative support and other resources. The Task Force will solicit the voluntary participation of federal, state and local law enforcement and prosecutorial agencies to organize initiatives to address mortgage fraud, including initiatives to enforce federal and state mortgage fraud laws.
Since its creation in September 2007, Miami-Dade County Mayor Alvarez's Mortgage Fraud Task Force has:
· Made more than 150 arrests
· Drafted new state legislation, Florida Statutes 193.133, which was adopted on July 1, 2008. The new legislation requires law enforcement to notify the property appraiser's office when fraud has been detected and mortgage fraud over $100,000 will now be considered 2nd degree felonies.
· Created the first Code of Conduct Model for real estate professionals and others involved in real estate transactions.
· Created the first local public/private partnership Task Force in the nation to fight mortgage fraud.
· Streamlined reporting and investigating of mortgage fraud by creating an online form.
· Created a Speaker's Bureau.
· Involved other local, state and federal agencies in a comprehensive approach to fight mortgage crime.
About Mayor Carlos Alvarez's Mortgage Fraud Task Force
The Mayor's Mortgage Fraud Task Force is chaired by Glenn Theobald, Chief Counsel of the Miami-Dade Police Department, and made up of law enforcement officials, prosecutors, business leaders, elected officials and other public servants. Through their vision and direction the Task Force aims to help reduce and prevent mortgage fraud through law enforcement and prosecution, legislation and public education. The Task Force was created in September 2007.
Mayor Carlos Alvarez's Mortgage Fraud Task Force Partners
Miami-Dade Police Department, Miami-Dade County Consumer Services Department, Miami-Dade County Property Appraiser's Office, Miami-Dade County Clerk of the Courts, Miami-Dade County State Attorney's Office, U.S. Secret Service, U.S. Attorney's Office, IRS, FBI, Office of the Treasury, the Florida Attorney General's Office, Florida Department of Law Enforcement, Office of Financial Regulation, and the Department of Business and Professional Regulation.
Coldwell Banker; Regions Bank; Florida Bankers Association; Florida Attorneys Title "The Fund;" Cohen, Fox; Coffey, Burlington; Abacus Lending; and National Title Insurance.
(MIAMI, May 6, 2009) - Today, the U.S. Senate voted 91 to 5 on Bill S.896 Helping Families Save Their Homes Act of 2009. Section 302 of the bill, which was introduced by U.S. Senator Bill Nelson and Congressman Kendrick Meek of Florida and amended onto Bill S.896, establishes a Nationwide Mortgage Fraud Task Force within the U.S. Attorney General's Office modeled after Miami-Dade County Mayor Carlos Alvarez's Mortgage Fraud Task Force. Bill S.896 was introduced by U.S. Senator Christopher J. Dodd of Connecticut. In the U.S. House of Representatives, Bill H.R.1106 was introduced by Congressman John Conyers, Jr. of Michigan in February 2009.
"Mortgage fraud is one of the fastest growing crimes in Miami-Dade County and the entire country," said Mayor Alvarez. "Last year, more than 1,000 mortgage fraud cases were reported in our community and 63,000 cases nationwide. This new bill will help all communities reduce mortgage fraud and prevent victimization. I want to thank my Task Force Chairman Glenn Theobald and all of the federal legislators for this new legislation."
The Nationwide Mortgage Fraud Task Force, which will operate under the U.S. Attorney General, will address mortgage fraud in the U.S. The Attorney General shall provide the Task Force with the appropriate staff, administrative support and other resources. The Task Force will solicit the voluntary participation of federal, state and local law enforcement and prosecutorial agencies to organize initiatives to address mortgage fraud, including initiatives to enforce federal and state mortgage fraud laws.
Since its creation in September 2007, Miami-Dade County Mayor Alvarez's Mortgage Fraud Task Force has:
· Made more than 150 arrests
· Drafted new state legislation, Florida Statutes 193.133, which was adopted on July 1, 2008. The new legislation requires law enforcement to notify the property appraiser's office when fraud has been detected and mortgage fraud over $100,000 will now be considered 2nd degree felonies.
· Created the first Code of Conduct Model for real estate professionals and others involved in real estate transactions.
· Created the first local public/private partnership Task Force in the nation to fight mortgage fraud.
· Streamlined reporting and investigating of mortgage fraud by creating an online form.
· Created a Speaker's Bureau.
· Involved other local, state and federal agencies in a comprehensive approach to fight mortgage crime.
About Mayor Carlos Alvarez's Mortgage Fraud Task Force
The Mayor's Mortgage Fraud Task Force is chaired by Glenn Theobald, Chief Counsel of the Miami-Dade Police Department, and made up of law enforcement officials, prosecutors, business leaders, elected officials and other public servants. Through their vision and direction the Task Force aims to help reduce and prevent mortgage fraud through law enforcement and prosecution, legislation and public education. The Task Force was created in September 2007.
Mayor Carlos Alvarez's Mortgage Fraud Task Force Partners
Miami-Dade Police Department, Miami-Dade County Consumer Services Department, Miami-Dade County Property Appraiser's Office, Miami-Dade County Clerk of the Courts, Miami-Dade County State Attorney's Office, U.S. Secret Service, U.S. Attorney's Office, IRS, FBI, Office of the Treasury, the Florida Attorney General's Office, Florida Department of Law Enforcement, Office of Financial Regulation, and the Department of Business and Professional Regulation.
Coldwell Banker; Regions Bank; Florida Bankers Association; Florida Attorneys Title "The Fund;" Cohen, Fox; Coffey, Burlington; Abacus Lending; and National Title Insurance.
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