Are Couples Staying Together for the House? is a post from: New York Real Estate Access Blog

A new study by the American Economic Review (AER) identifies a correlation between lower divorce rates and home price declines. According to Census data, the divorce rate fell to 46 percent in 2009 from 50 percent in 1996.

Essentially, AER says couples are more likely to divorce when equity gains make it possible for them to put money down on separate homes. But a decrease in residential values and the high cost of divorce proceedings have prompted some couples to stay together.

AER says these findings should be taken into consideration as lawmakers push changes in housing policy. “Given the high level of current interest in policy to shore up housing markets, it is worth better understanding the broader consequences of such policy,” the report concluded.

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Source: “Divorce Rates Decline Alongside Home Prices,” Realty Times, Carla Hill (July 15, 2011)

Fannie, Freddie May Lose Top Credit Rating is a post from: New York Real Estate Access Blog

Standard & Poor’s cautioned Fannie Mae and Freddie Mac that they may lose their top credit ratings if lawmakers don’t soon raise the government’s borrowing limit to avoid default.

The S&P also said that the government-sponsored enterprises could potentially default on their debts since they are so reliant on the U.S. government for funding. Fannie and Freddie own or guarantee about half of all U.S. mortgages.

Congress is frantically trying to come up with a solution to raise the $14.3 trillion borrowing limit to avoid a default by an Aug. 2 deadline. If they are unable to come up with a compromise, analysts say it could have a devastating effect on the U.S. economy, particularly the already fragile housing market.

If the government defaulted on its bonds, the government likely would have to raise interest rates dramatically, which in turn would hamper home ownership, analysts say.
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Source: “S&P Warns it May Downgrade Fannie, Freddie Credit,” Associated Press (July 15, 2011)

Help on the Way for Underwater Home Owners? is a post from: New York Real Estate Access Blog

A bill introduced in the Senate aims to remove barriers for underwater home owners looking to refinance. “The Helping Responsible Homeowners Act” would order Fannie Mae and Freddie Mac to waive fees and remove barriers that are keeping underwater borrowers from refinancing to lower mortgage rates.

The bill, authored by Sen. Barbara Boxer, D-Calif., has gained more momentum in Congress after Sen. Johnny Isakson, R-Ga., who ran one of the nation’s largest real estate brokerages, also signed on to sponsor it.

“The time to help struggling home owners is now while interest rates remain at near-historic lows,” Boxer says. “This legislation would help millions of responsible home owners who are making their payments, but are still struggling to make ends meet. By helping these home owners refinance at lower rates, we will put thousands of dollars back in the pockets of families and strengthen our economy.”

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Source: “Underwater Home Owners Refinancing Bill Gains Momentum,” Housing Predictor (July 15, 2011)

Atlanta Agents on Edge After 2 Violent Attacks is a post from: New York Real Estate Access Blog

Real estate professionals in Atlanta are being encouraged to review safety procedures following two recent attacks on real estate professionals and a series of robberies at open houses.

Last Thursday, a real estate broker in DeKalb County was bound with duct tape and robbed inside a model home. Two weeks prior, a gunman attempted to sexually assault a real estate agent in a subdivision’s business office in Smyrna. Real estate professionals in Atlanta’s Buckhead neighborhood also reported over the weekend that purses and other items were being taken during open houses. In those incidences, a woman and two men would visit the open houses and split up once they got inside, agents say.

“What it does do — and maybe this is the positive that can come out of anything like that — is remind everyone that we have to keep safety top of mind in everything we do,” says Wight Mixon, president of the Atlanta Board of REALTORS®. “We go about our business, especially in this economy when everyone is just trying to meet with as many potential buyers and sellers as they can, but we need to not let our guard down as we do so.”
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Source: “Atlanta Real Estate Workers On Guard After Attacks,” Associated Press (July 15, 2011)
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Bill Calls for Extending Jumbo Loan Limits is a post from: New York Real Estate Access Blog

A bill introduced late last week calls for extending the current conforming loan limits on government-backed mortgages at Fannie Mae and Freddie Mac for another two years.

The bill, introduced by Rep. John Campbell, R-Calif., and Rep. Gary Ackerman, D-N.Y., would allow the government-sponsored enterprises and the Federal Housing Administration to guarantee or buy mortgages worth up to $729,750 in many neighborhoods.

The current loan limits are set to expire Oct. 1. If an extension isn’t granted, the maximum mortgage amount in high-cost areas will drop from $729,750 to $625,500 (however, that limit will vary throughout the country).

“With the economy remaining fragile and the housing sector still struggling to recover, now is not the time to make the cost of mortgages more expensive,” Ackerman said.

The National Association of Home Builders has said it fears more than 17 million homes nationwide will become ineligible for more affordable federal funding if the loan limit expires. However, last week, Federal Reserve Chairman Ben Bernanke said he was confident that the private market, including investors and insurers, would fill the void if the conforming loan limits expired — although likely at a higher cost to borrowers.

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Source: “Lawmakers Introduce Bipartisan Bill to Extend Conforming Loan Limits,” HousingWire (July 15, 2011)
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Mortgage Caps Are Just Part of the Problem

FTC No Longer Enforcing Parts of MARS is a post from: New York Real Estate Access Blog

The Federal Trade Commission announced on Friday that it would no longer enforce against real estate professionals most of a new rule in the Mortgage Assistance Relief Services (known as MARS). This had been a roadblock for practitioners trying to assist consumers in short-sale transactions.

“Real estate professionals will not have to make several disclosures required by the rule that, in the context of assisting with short sales, could be misleading or confuse consumers,” according to a statement by the FTC. “As more and more American home owners seek short sales, it is especially important that the rule not inadvertently discourage real estate professionals from helping consumers with these types of transactions.”

The MARS rule, which was proposed in 2009 and finalized and implemented in December 2010, targeted for-profit companies that charge high fees to consumers seeking mortgage assistance and required participants to disclose information about their services and barred companies from charging advance fees.

“After the [MARS] rule went into effect, a number of real estate professionals who help consumers with short sales raised concerns about complying with the rule,” according to an FTC statement. “These professionals pointed out that some of the required disclosures could confuse consumers or could be inaccurate in this context.”

As such, the FTC said it will no longer enforce most of the provisions of the MARS rule against real estate professionals who are completing short sale transactions. Regarding licensed real estate professionals who are also in good standing under state requirements, the FTC says they will now be exempt from the “obligation to make disclosures and from the ban on collecting advance fees.”
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Source: “FTC Will Not Enforce Provisions of MARS Rule Against Real Estate Professionals Helping Consumers Obtain Short Sales,” Federal Trade Commission (July 15, 2011); “FTC Decides Not to Enforce Part of MARS,” HousingWire (July 15, 2011); “U.S. Relaxes ‘Short Sale’ Rule for Real Estate Agents,” Dow Jones Newswires (July 15, 2011)
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Read more:

REALTOR® Magazine’s Coverage of the 2011 Midyear Legislative Meetings

Design: Charming Apartment with Surprising Design Elements is a post from: New York Real Estate Access Blog

Design: Scandinavian Duplex Characterized by Refinement and Diversity is a post from: New York Real Estate Access Blog

Welcome to a delightful duplex displaying a remarkable interior design. Stretching over a surface of 127 square meters and consisting of 3,5 rooms plus kitchen, this place couldn’t be more captivating. The apartment breathes continental style and is characterized by good taste and refinement.  The ground floor accommodates two bedrooms, a recently renovated large kitchen with beautiful surfaces and a social area. The size of the kitchen allows many friends to easily mingle and enjoy a nice dinner together. There is a generous island centrally located in the kitchen, which is both stylish and practical, providing storage space in the form of several boxes. A nice white staircase takes you up to the apartment’s attic floor. Slanted ceilings, wooden beams and a lovely chimney ensure a unique atmosphere. Splashes of color give a fresh, vivid feel, perfect for creating a wonderful socializing context. Impressed?

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Via: Freshome

Georgia Real Estate Agent Attacked at Gunpoint is a post from: New York Real Estate Access Blog

Police continue to search for a suspect after a real estate agent says she was attacked and robbed at gunpoint last week while working at a leasing office in a new subdivision in Cobb County, Ga.

The man entered the leasing office in broad daylight, briefly spoke with the agent, and then robbed her at gunpoint, taking her money and jewelry. The man then forced her into a bathroom where investigators say the man attempted to sexually assault the agent.

The female real estate agent was able to fight off her attacker and run out the back door and escape.

Source: “Cobb Co. Real Estate Agent Attacked in Broad Daylight,” Fox5 Atlanta (July 1, 2011)

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Can a New HUD Program Save Home Owners? is a post from: New York Real Estate Access Blog

In June, the Department of Housing and Urban Development launched a new grant program to help home owners who have fallen behind on their mortgage payments due to unemployment or unexpected medical bills.

The program offers eligible home owners $50,000 in interest-free loans for up to two years.

HUD has until the end of the government’s fiscal year, Sept. 30, to spend all of its $1 billion for the Emergency Homeowners’ Loan Program (or EHLP), which will provide 27 states with aid for the program. Home owners in eligible states have until July 22 to complete their applications.

HUD hopes that 30,000 home owners can be helped through the program.

However, while some are seeing the program as a last chance to help unemployed home owners stay in their homes, others aren’t as convinced the program will do much good in ultimately lessening foreclosures in the country.

“The best foreclosure mitigation program in America is a job,” argues Rep. Jeb Hensarling, R-Texas. “It’s not a government check, it’s a paycheck.” Earlier this year, Hensarling sponsored a bill to end EHLP, which was supported by the House. The Senate has yet to take up the bill, however.

For a full list of states and eligibility requirements for EHLP, visit the HUD Web site.

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Source: “HUD to Give Away $1 Billion to Struggling Home Owners,” The Washington Post (July 4, 2011)
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