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

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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Good Neighbor Deadline Approaches is a post from: New York Real Estate Access Blog

Don’t miss this opportunity to nominate your favorite community volunteer for REALTOR® Magazine’s 12th Annual Good Neighbor Awards. The deadline is May 20.

Five winners will be announced in the November issue of REALTOR® Magazine. Each winner will be recognized at the 2011 REALTORS® Conference & Expo in Anaheim, Calif., and receive a $10,000 grant for his or her charity. Winners will also receive travel expenses to the conference and national and local media exposure for their community cause. In addition to the winners, five honorable mentions will each receive a $2,500 grant.

“REALTORS® play a significant role in our nation’s communities,” said NAR President Ron Phipps. “The Good Neighbor Awards highlights NAR members who spend time and energy to help others. They also remind us that REALTORS® not only help people purchase homes, but also they work to improve the quality of life in those homes.” Phipps was a Good Neighbor Award recipient in 2001 for his work with the Tomorrow Fund.

Last year’s winners contributed a combined total of nearly 8,000 hours to their causes and drew a standing ovation from more than 6,000 REALTORS® and guests during the conference’s general session in New Orleans. The 2010 winners were Keri Kidd Cannon and Pam Kidd, Fridrich & Clark Realty, LLC, Nashville, Tenn., for Children of Zimbabwe Fund-Village Hope; Cathie McGregor Critchlow, The Franklin Group Morgan, LLC, Morgan, Utah, for The Women’s Retreat House; James T. Elcock, Elcock Properties, St. Charles, Mo., for Kids Against Hunger; Dave Philp, Coldwell Banker Burnet, Chaska, Minn., for Ridgeview Foundation/Ridgeview Medical Center; and Wendy and John Rocca, Century 21 Commonwealth, Watertown, Mass., for Operation American Soldier.

“REALTOR® Magazine always looks forward to recognizing Realtors who volunteer in their communities,” said REALTOR® Magazine Editor in Chief Stacey Moncrieff. “The Good Neighbor Awards allow us to celebrate those members, as well as inspire others to help those in need.”

Previous Good Neighbor Award winners say their charities have benefited from the grant money and the increased public exposure. “Winning the Good Neighbor Award benefited our work in Zimbabwe in so many ways,” said 2010 Good Neighbor Award winner Keri Kidd Cannon. “The grant provided tremendous relief in a time when raising money can be a bit of a challenge. More importantly, we also received an outpouring of support from the REALTOR® community.”

Good Neighbor Awards entries must be received by Friday, May 20, 2011. For more details and a nomination form, visit www.REALTOR.org/gna.

REALTOR® Magazine’s Good Neighbor Awards is sponsored by Lowe’s and HouseLogic. In addition to the grant money, each winner will receive a $2,000 Lowe’s gift card and each honorable mention will receive a $1,000 Lowe’s gift card.

Source: NAR

Is Inexperience Hampering the Short Sale Process? is a post from: New York Real Estate Access Blog

Inexperienced real estate professionals are to blame for hampering the short sale process, according to two real estate professionals who specialize in distressed sales.

“The banks know who’s experienced and who’s not,” said real estate pro Travis Waller at a recent conference in New York. “If you don’t present the files correctly to the bank, you’re going to get put at the bottom of the pile. When the banks recognize you know what you’re doing with your presentation of the documents, you’ll get a call within a few days.”

The flood of short sales on the market have prompted many in the real estate industry to refocus their careers, finding it to be the main driver of business nowadays.

But “many short sales are lost to foreclosure because of the inexperience of the listing agent,” Waller said.

Waller said that borrowers he’s worked with have already missed four to seven mortgage payments before they come to him, which means he must work quickly on a short sale deal before the property falls into foreclosure.

“You are working under the gun as a short sales agent. If you don’t know what you’re doing, then time is just ticking away,” he said.

Home Affordable Foreclosure Alternative program agreements in the short sale process can be completed in as few as 60 days by experienced agents, he said.

Source: “Inexperienced Real Estate Agents Causing HAFA Short Sales to Fail,”
National Mortgage News (Jan. 14, 2011) (log in required)

2011 Mortgage Trends: Jumbo Loans, Cash Buys is a post from: New York Real Estate Access Blog

The number of mortgage applications for home purchases is expected to become a bigger part of the mortgage market in 2011 as home prices stabilize, predicts the Mortgage Bankers Association. Refinancing has mostly dominated in recent months as home owners looked to lock-in low interest rates, but experts predict refinancing to slow as new mortgage shoppers dominate.

Real estate analysts predict the other following trends in the mortgage market for 2011:

Rates on the rise. The Mortgage Bankers Association predicts mortgage rates to rise slightly in 2011 and hover around 5 percent. They expect rates to increase to about 6 percent in 2012.

Jumbo loans become more attractive. Jumbo loans (loans over $417,000 in most housing markets and above $729,750 in high-cost housing markets) are expected to pick up pace in the next few months. Jumbo loans often have higher mortgage rates than conforming loans. However, with mortgage rates on jumbo loans dropping, experts predict a hike in refinancing and purchase applications for high-end housing.

All-cash purchases. All-cash purchases represented about a quarter of all existing home purchases in the last four months of 2010, according to Lawrence Yun, chief economist of the National Association of REALTORS®. He expects all-cash purchases to continue to represent a big part of the real estate landscape in 2011.

Slow and complex mortgage loan process. The time between application and closing can take as much as 60 days and that’s not expected to get any faster, experts say. Lenders often recommend borrowers lock in a loan 60, 75, or 90 days to help ensure the loan process will be completed within that lock-in period. The industry’s new levels of documentation and verification that is now required is causing lengthy delays in the loan process, experts say.

Source: “7 Mortgage Trends to Expect in 2011,” MSNBC (Jan. 10, 2011)

HAFA Posts New Rules for Short Sales is a post from: New York Real Estate Access Blog

Loan servicers will have 30 days to send a borrower a short-sale agreement that includes the list price or acceptable sales proceeds under recent changes made to the Home Affordable Foreclosure Alternatives Program, aimed at distressed borrowers who don’t qualify for other government loan modification programs.

Once a sales contract has been initiated, loan servicers then have 30 days to approve or reject the transaction.

The stricter timelines are believed to help speed up the short sale process, which has faced numerous complaints for how long it takes lenders to review and approve short sales often causing buyers to walk away.

The stricter timelines were apart of several revisions the Treasury Department recently announced to its HAFA program — the second major revision to the program since its launch in 2009.

Another big change: Loan servicers will no longer be restricted on paying second-lien holders, allowing them more freedom particularly when dealing with second-lien holders when borrowers owe less than $100,000. Loan servicers used to be restricted to paying second-lien holders no more than 6 percent of outstanding loan balance (with an overall limit of $6,000) in exchange for releasing subordinate liens. Second-lien holders have been another big obstacle to completing short sale transactions.

HAFA’s new directives also now forbid loan servicers from deducting vendor expenses from commissions paid to real estate brokers.

The rules are effective Feb. 1. It does not apply to mortgages owned or guaranteed by Fannie Mae or Freddie Mac, or insured or guaranteed by a federal agency such as the Federal Housing Administration (FHA).

Source: “Short-Sale Incentives Revamped Again,” Inman News (Jan. 10, 2011)

Long-Term Rates Drop Back a Bit is a post from: New York Real Estate Access Blog

Long-term mortgage rates dipped a bit in the week before Christmas, according to Freddie Mac. The mortgage giant reported that interest on 30-year, fixed loans averaged 4.81 percent — down from 4.83 percent the week before and 5.05 percent a year earlier.

The 15-year, fixed rate, meanwhile, averaged 4.15 percent compared to 4.17 percent the previous week. Initial interest on five-year adjustable-rate mortgages settled at 3.75 percent, Freddie Mac noted, while one-year ARMs closed the week at an average of 3.4 percent.

Source: Housing Wire, Christine Ricciardi (12/27/10)

Economic Growth Exceeds Forecast is a post from: New York Real Estate Access Blog

A rash of favorable economic reports, including a jump in consumer spending and a drop in layoffs, are offering hope for a pickup.

Moreover, new Commerce Department data show U.S. gross domestic product grew 2.6 percent in the third quarter — not 2.5 percent as initially reported. The encouraging signs are prompting some economists to revise fourth-quarter and 2011 growth estimates upward.

Source: The Wall Street Journal, Conor Dougherty (12/23/10)

Geithner Backs Mortgage Service Standards is a post from: New York Real Estate Access Blog

U.S. Treasury Secretary Timothy Geithner said Thursday that he believes the U.S. needs national standards for mortgage servicers.

Geithner plans to charge the new Consumer Financial Protection Bureau with creating these new standards. He expects them to start by examining existing state standards.

“We got this terribly wrong as a country,” he said. “We want to make sure we’ve got a durable set of fixes.”

Source: The Associated Press, Alan Zibel (12/16/2010)

How to Keep Buyers Focused is a post from: New York Real Estate Access Blog

Many buyers are paralyzed by the vast selection of houses for sale and by the fear that the value of the property they choose will fall as soon as they own it.

“Buyers have read a lot about foreclosures, short sales and how desperate sellers are,” says Sarah Ritter, an associate with RE/MAX Properties in Western Springs, Ill. “They feel there is this fabulous deal out there, a mansion with all the bells and whistles. …They are convinced the next house they look at will be a better deal, and with so much inventory now on the market, they keep looking and looking.”

Here are a few ways to keep a potential buyer on track:

· Line up financing. Find out what your buyers qualify for so you don’t end up looking at houses they can’t afford.

· Decide what they want. Make a list of the most important features and then refine the search.

· Use technology. Help clients get organized by previewing as many properties as possible via the Internet.

· All real estate is local. Remind buyers that those news reports they are hearing of falling prices are often in places other than where they are looking.

· Make an offer. Even a low offer is a starting point. The worst that can happen is that the sellers will refuse to negotiate.

Source: United Feature Syndicate, Lew Sichelman (12/19/2010)