“The only thing that stands between a man and what he wants from life is often merely the will to try it and the faith to believe that it is possible.” 

-Richard M. DeVos

JOIN US IN WELCOMING THE NEWEST ADDITION TO TEAM EMPOWERMENT LISA RICKETTS

 

YOUR CLIENT CARE COORDINATOR

Lisa has joined our team bringing with her a background in both the banking and title industries. We are excited to have her become part of Team Empowerment. As your Client Care Coordinator she will assist you and your buyer(s) once you’ve received an accepted contract. It is her responsibility to maintain target dates, provide you and your buyer(s) with the most up to date information on a weekly basis, also known as our World Class Updates every Wednesday.

Along with her experience she brings to the team a very positive attitude and common goal of all of ours, which is to bring your buyer(s) a pleasant and enjoyable experience within their purchase transaction. Working closely with you and your buyer(s) you will find that she is just as passionate about providing great quality service as it is to put the keys into your buyer(s) hands to their new home.

You’re encouraged to introduce yourself or provide Lisa with a welcoming phone call or email by contacting her directly at:

Phone: 925-295-9361

Email at lricketts@rpm-mtg.com.

Please note that Lisa is also able to assist you should you need immediate assistance for questions on loans in process, or if you have any other questions or concerns.

NEWS & HEADLINES

Productivity of U.S. workers dropped 0.3% in 2Q2011, pushing labor costs up from 2010’s record low and Unit Labor Cost rose 2.2%. Falling efficiency and rising costs hurt profits and mean companies have less incentive to take on staff or increase pay, representing another obstacle to the recovery after growth almost stalled in the first half of the year.

Fed May Boost Stimulus Pledge. Bernanke isn’t scheduled to hold a press briefing following today’s FOMC meeting, as they are only after two day meetings. There is speculation that the 2:15 FOMC statement will indicate a increase in the commitment to monetary stimulus due to a faltering economic recovery and a U.S. credit- rating cut provoked a rout in global stocks. Federal Reserve policy makers are facing mounting pressure to do more to bolster the world’s largest economy as shares plunge. A survey showed 42% of respondents said more bond purchases are very unlikely, and 29% as somewhat unlikely. The statement wording is a delicate balancing act as such a step may backfire because it could panic investors by signaling the economy is in worse shape than the Fed thought.

Treasuries Fall on Speculation Fed Will Offer Increased Economic Stimulus. UST and MBS prices fell and U.S. stocks rose early Tuesday on speculation the Federal Reserve will act to restore confidence in financial markets following S&P’s downgrade to US debt. Yesterday’s global selloff caused the Dow to plunge 634.76 points, its sharpest one-day decline since the financial crisis in 2008 and wiped out $1 trillion from the nation’s market value, After the first-ever downgrade of the U.S.’s sovereign-debt rating, investors world-wide poured their money into-not out of-U.S. Treasurys. Worries about the U.S. economy and the European debt crisis out trumped concerns about the U.S. downgrade as treasurys tend to outperform other assets during times of slow economic growth or recession, as prices usually rise along with pessimism about the economy.

Let me know what I can do to assist you with your buyers!

FED TO KEEP RATES AT RECORD LOWS AT LEAST THROUGH MID 2013

The Federal Reserve pledged for the first time to keep its benchmark interest rate at a record low at least through mid-2013 in a bid to revive the flagging recovery after a worldwide stock rout.

The Federal Open Market Committee discussed a range of policy tools to bolster the economy and said it is “prepared to employ these tools as appropriate,” it said in a statement today in Washington. Three members of the FOMC dissented, preferring to maintain the pledge to keep rates low for an “extended period.”

The decision represents the biggest effort since November to spark the U.S. economy and revive confidence while stopping short of initiating a third round of large-scale asset purchases. Chairman Ben S. Bernanke and his colleagues acted after reports showed the economy was slowing and an unprecedented downgrade to the U.S. credit rating sent stocks tumbling from Sydney to New York.

The Fed offered a dimmer view of the economy than it did in the last statement in late June. “Economic growth so far this year has been considerably slower than the committee had expected,” it said. The Fed also said it expects a “somewhat slower pace of recovery over coming quarters,” adding that “downside risks to the economic outlook have increased.”

The Fed left its target for the federal funds rate in a range of zero to 0.25 percent, where it’s been since December 2008. It said it will maintain its policy of reinvesting maturing securities without saying for how long.

Richard Fisher, president of the Dallas Fed, Charles Plosser of Philadelphia and Narayana Kocherlakota of the Minneapolis Fed all dissented.

Stocks Fall

The Fed’s decision came after Standard & Poor’s unprecedented downgrade of the U.S. credit rating on Aug. 5 sent share prices tumbling on concern a global economic slowdown will deepen. Fitch Ratings and Moody’s Investors Service affirmed their top grades for U.S. debt.

The Standard & Poor’s 500 Index tumbled 6.7 percent yesterday in New York, its biggest decline since December 2008.

The drop has wiped out all the gains in stocks since Nov. 3, 2010, when the Fed announced it would buy $600 billion of government bonds, its second round of asset purchases.

Treasuries surged yesterday as investors sought the safety of government debt. Yields on 10-year notes fell 22 basis points, or 0.22 percentage point, to 2.32 percent, the least since January 2009.

Europe’s debt woes added to the market turmoil. Central bankers and finance ministers from the Group of Seven nations pledged Aug. 7 to “take all necessary measures to support financial stability and growth.”

European Debt

The next day, the European Central Bank began buying Italian and Spanish bonds in its riskiest attempt yet to battle the continent’s sovereign debt crisis.

While U.S. inflation rates have risen, they are still below the Fed’s informal target range of 1.7 to 2 percent. A measure of consumer-price gains, stripping out food and energy, stood at 1.3 percent for the 12 months ending in June. That’s up from 0.9 percent for the 12 months ending December.

Bernanke told Congress on July 13 that the Fed was prepared to buy more Treasury bonds if the economy appeared in danger of stalling or if the threat of deflation looked like it was going to re-emerge, while repeating his forecast for a pickup in growth in the second half of the year.

Recent economic data have cast doubt on his outlook.

Gross domestic product expanded at a 1.3 percent annual pace in the second quarter, less than forecast by economists, a July 29 government report showed. The economy almost stalled in the prior quarter, growing at a 0.4 percent pace, the weakest three-month period since the recovery began in June 2009.

Deeper Recession

The same report showed that the recession was about 25 percent deeper than previously estimated, leaving GDP short of its 2007 peak and the economy more vulnerable to another contraction.

Consumers cut spending in June for the first time in almost two years, the Commerce Department said Aug. 2.

“The consumer environment remains very tough,” Michael Polk, chief executive officer of Atlanta-based Newell Rubbermaid Inc., said on a conference call with analysts on July 29. He said a “difficult” U.S. economy was among the reasons the maker of Rubbermaid containers and Sharpie pens had cut its full-year profit and sales forecasts.

Hiring has slowed as employers lost confidence in the recovery. Average monthly payroll gains fell to 72,000 in the three months through July, from 215,000 in the prior three months. The jobless rate fell to 9.1 percent in July from 9.2 percent in June as Americans gave up looking for work.

“When we have the kind of combination of sub-par growth, stubbornly high unemployment and a big debt overhang, you need low interest rates,” Carmen Reinhart, a senior fellow at the Peterson Institute for International Economics in Washington, said on Aug. 5.

The housing market has also been a drag on growth as sliding home prices cut into consumer confidence and wealth.

Sales of existing homes, the largest portion of the housing market, totaled 4.77 million on an annualized basis in June, a

34 percent drop from their pre-recession peak in September 2005.

The S&P/Case-Shiller index of property values in 20 cities declined 4.5 percent in May from a year earlier, the most in 18 months, and homeownership at 65.9 percent is at its lowest point since 1998, even as affordability is close to a record high.

“We’re still in a market that is clearly bouncing along the bottom on housing and new construction,” Christopher M.

Connor, chief executive officer of Sherwin-Williams Co., said on a July 21 conference call. The Cleveland-based company, the largest U.S. paint maker, also cut its full-year profit forecast because of rising raw material costs.

Manufacturing, which had been one of the few bright spots in the economy, grew in July at its slowest pace in two years, the Institute for Supply Management said on Aug. 1.

The recovery is sputtering just as the existing fiscal stimulus programs expire and the federal government moves toward reducing budget deficits.

The debt deal signed by President Barack Obama on Aug. 2 would cut $2.4 trillion or more off budget deficits over 10 years.

The expiration of current fiscal stimulus programs will slice 1.5 percentage points off economic growth next year, according to economists at JPMorgan Chase & Co. and Deutsche Bank Securities.

“Without a struggle, there can be no progress” -Frederick Douglass

 NEWS & HEADLINES

 S&P: United States of America Long-Term Rating Lowered To ‘AA+’ On Political Risks And Rising Debt Burden; Outlook Negative: Text of S&P press release: ” We have also removed both the short- and long-term ratings from CreditWatch negative. · The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics. More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011. Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government’s debt dynamics any time soon. The outlook on the long-term rating is negative. We could lower the long-term rating to ‘AA’ within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.”

Stocks Fall, Treasuries Rally on U.S. Rating. Bonds were higher overnight as equity markets take another bath on reaction to S&P’s downgrade of the U.S. AAA rating late Friday (to AA+). Initially the market did get hit when it first started trading in Tokyo, but the equity losses have been sharp enough to help bonds rally. The benchmark 10-year UST note yield fell to 2.41%, the lowest level since October, and the 2yr UST yield hit a fresh record low of 0.232%. The price move underlines the dilemma confronting investors: there are few alternative safe-haven assets out there that can match the depth and liquidity of the Treasury market, with over $9.3 trillion in debt outstanding. The US Debt downgrade from triple-A to double A-plus by Standard and Poor’s isn’t a big surprise to investors as the rating firm has signaled such a move in recent weeks. Yet the decision late Friday evening came following the biggest weekly selloff in U.S. stocks since the 2008 financial crisis. Fears about the U.S. economy faltering further and the euro-zone debt crisis have spooked investors’ sentiment and increased worries that the downgrade could further undermine confidence by U.S. consumers to spend and businesses to expand, increasing anxiety and outlook for the global economy.

Global Economy Near Tipping Point as Markets Eye FOMC Meeting. Tuesday’s monetary policy meeting by the Federal Reserve may provide further stimulus even though the options are running thin at the moment. One way for the Fed to provide stimulus is to signal that the key policy rate will stay where it is longer than many thought. Interest rate futures indicate the first rate hike will come in the first half of 2012, pushed out from next year.

Fannie Mae, Freddie Mac Ratings Cut by S&P Amid Reliance on U.S. Backing. Standard & Poor’s lowered credit ratings for Fannie Mae, Freddie Mac, and other lenders backed by the federal government.

 

 

WILL THE S&P DOWNGRADE AFFECT INTEREST RATES?

Standard & Poor downgraded the U.S.’s credit rating on Friday, despite Congress reaching a deal in the final hours on the debt ceiling crisis last week. And now many of your customers may be asking: What does this mean for interest rates?

“The impact on your wallet of the Standard & Poor’s downgrade of the nation’s credit rating is similar to what would happen if your own credit score declined: The cost of borrowing money is likely to go up,” the Washington Post explained in the aftermath of S&P’s decision.

S&P downgraded the U.S.’s top-notch AAA credit rating for the first time in history, moving it down one notch to AA+; the rating reflects a downgrade in S&P’s confidence in the U.S. government’s ability to repay its debts over time. It’s not clear, however, whether S&P’s downgrade will instantly effect rates, analysts say.

The 10-year Treasury note is considered the basis for all other interest rates. And “the downgrade could increase the yields on those bonds, forcing the government to spend more to borrow the same amount of money,” the Washington Post article notes. “Many consumer loans, such as mortgages, are linked to the yield on Treasurys and therefore would also rise.”

While consumers who have fixed interest rate mortgages will be immune to any changes in borrowing costs, home buyers shopping for a loan or those with mortgages that fluctuate may see a rise in rates later on, some analysts say.

Mark Vitner, senior economist at Wells Fargo Securities, told the Associated Press that he doesn’t expect the downgrade to drive up interest rates instantly since the economy is still weak and borrowers aren’t competing for money and driving rates higher. However, he expects in three to five years, loan demand will be much higher and then the downgraded credit rating might cause rates to rise.

Analysts are still waiting to see if the other rating agencies, Moody’s and Fitch, follows S&P’s lead in its downgrade of the U.S. credit rating. If so, the aftermath could be much worse, analysts say.

The debt deal reached by Congress last week was expected to save the U.S. from any credit rating downgrade. However, S&P said lawmakers fell short in its deal. Congress’ deal called for $2 trillion in U.S. deficit reduction over the next 10 years; S&P had called for $4 trillion.

VIDEO: NAR Chief Economist Lawrence Yun on U.S. Debt Downgrade: Impact on Real Estate

 

 

MORE HOME OWNERS GET LOAN MODIFICATION HELP

In June, the Home Affordable Modification Program helped 657,044 home owners avoid foreclosure through permanent loan modifications – that’s up from 633,459 in May, according to Treasury Department statistics released Friday.

However, while the number has grown, the numbers still fall short of the initial goal to help 3 million to 4 million borrowers through HAMP, which since 2009 has reduced mortgage payments to help borrowers avoid foreclosure. (Home owners in the program must make a few trial payments before the loan modification becomes permanent.)

For underwater home owners – those who owe more on their mortgages than their home is currently worth – about 6,941 have participated in a principal-reduction program, up from 4,911 last month, the Treasury Department reported late last week. For borrowers who qualified to have their loan balances reduced, they’ve seen median principal reductions of $67,751, or 30.7 percent.

“We’re continuing to see a slight improvement in home prices and a decline in mortgage defaults as our foreclosure prevention programs reach more borrowers upstream in the process,” says Raphael Bostic, Housing and Urban Development assistant secretary. “But we have much more work to do to help the market recover and to reach the many households there and across the nation who still face trouble.”

 

 

YOUNG GENERATION HIT HARD BY RECESSION

The recession has hit the younger generation hard and is forcing them to delay many major life changes and purchases, according to a new survey. About 44 percent of Millennials – people aged 18 to 29 – say they will have to delay buying a home due to economic factors, according to a survey conducted by The Polling Co. Inc./WomanTrend.

About 75 percent say they have or will delay a major life change or purchase due to economic factors, and 30 percent say the bad economy has prompted them to delay changing jobs or cities. What’s more, nearly 25 percent say they will delay starting a family, and 18 percent say they will delay getting married.

Such delays by the younger generation has started to affect household formation. Many young professionals are moving back in with their parents to curb costs, which has caused household to grow in recent years after facing decades of declines.

“The impact of the poor economy, in human terms, has been devastating. This is especially true for young Americans, whose lives have been interrupted and dreams put on hold due to the lack of economic opportunity,” says Paul T. Conway, president of Generation Opportunity.

“What you can do or dream you can do, begin it; boldness has genius, power, and magic in it” 

-Johann von Goethe: Was a German poet, novelist, and dramatist

MORTGAGE RATES PLUNGE, HISTORIC LOWS

REALTORS, this is a great opportunity for you to check-in with your clientele going back 2 years. Rates are at a historic low! Even if your client thinks they’re at the lowest rate possible, tell them to contact me just for 5 minutes of their time to make sure they are. They can likely save money on their monthly mortgage payment!

Zackry Cooper: 925-295-9350

NEW YORK (CNNMoney) — As Congress and President Obama hammered outa debt deal over the past week, mortgage rates plunged — hitting new lows in some instances.

The 30-year fixed rate, usually the most popular choice for homebuyers, fell to 4.45% from 4.57% last week — its lowest point since last November, according to the Mortgage Bankers Association.

Meanwhile, the rate on the less popular 15-year fixed plunged to a new record low of 3.52%, down from 3.67% a week earlier.

The up-front points lenders charged dropped as well, to 0.78 from 1.14 for 20%-down loans, according to the industry group.A homebuyer financing a $200,000 mortgage could save $14 a month and pay $720 less at closing based on the current points.

The rock-bottom interest rates drove up total mortgage applications — both for purchases and refinancings — by about 7%, compared with a week earlier, said Michael Fratantoni, the Mortgage Bankers Association’s vice president of research and economics. While the increase may seem substantial, he noted that applications are still well below last year’s level.

“Refinance application volume increased, but even though 30-year mortgage rates are back below 4.5 percent, the refinance index is still almost 30 percent below last year’s level. Factors such as negative equity and a weak job market continue to constrain borrowers,” he said.

Responsible homeowners left out in the cold

On Bankrate.com Wednesday, a 30-year fixed was available that carried an annual percentage rate of just 4.03%. The overnight average was 4.37%, the site reported.

Mortgage rates are following bond yields lower, explained Greg McBride, Bankrate’s chief economist. The yield on 10-year Treasury notes hit 2.6% on Wednesday down from 3.03% the last week of July.

“The plunge in Treasury yields is because we’ve been hit with a string of poor economic readings,” said McBride.

Those include a weak GDP report and slowdowns in manufacturing, consumer spending and hiring.

Job killing companies

With rates so low and home prices down more than 30% from peak, there has probably never been a more affordable time to buy a home.

For some buyers though, “Time is of the essence.,” said McBride. “The loan limits (for Fannie/Freddie mortgages) drop on October 1 so acting now for closing by Sept. 30 is important for buyers in the upper price levels.”

5 QUICK TIPS FOR AUGUST 2011

1. Price it Right From the Start

It is crucially important that we try our best to price our listings correctly right out of the gate. We know it is difficult in today’s volatile market to place the correct price on any property. However, the consequences to the seller if we don’t do this can be severe for two reasons. First, in a market where prices continue to decline, any additional time taken to sell the home only means a lower selling price. The other reason: research has shown that properties that have experienced price adjustments wind up taking longer to sell and sell for less money no matter what the current market conditions are.

2. Window of Opportunity

While the banks are trying to correct and substantiate their foreclosure paperwork, large inventories of distressed properties coming to market have been delayed. That gives our current listing inventory a ‘window of opportunity’ to sell before the additional downward pressure of these distressed properties is felt.

3. Conforming Loan Limits

It will take an act of Congress to keep loan limits from falling on government backed jumbo loans in many of the higher priced regions in the country this October. This will result in consumers paying as much as ½ to ¾ of a point more on the rate of their 30 year mortgage.

4. August is a Great Time for Education

The two best months for real estate professionals to take education are August and December. These months rank 11th and 12th in regard to transaction counts in most markets. That means that the time invested in taking a class in either of these months is less expensive when factoring in possible lost business. You may decide to take a single class, take classes toward a designation or increase a skill set such as photography or enhancing your social media presence. August is a great time for investing time to make yourself more proficient in a certain aspect of real estate.

5. Remember, it’s up to YOU

Let’s keep it simple. Your success is determined by one and only one thing: your commitment to it. Don’t just want success – BE COMMITTED TO IT!

 

TOP PRIORITIES OF FIRST-TIME HOME BUYERS

First-time home buyers make up a big chunk of home buyers. So what are their top priorities when shopping for a home? Bankrate.com recently featured “must-haves” for first-time home buyers. Here are a few top priorities:

Affordable price. “Unlike a trade-up buyer, they don’t have any equity to roll into the purchase of their next home, so coming up with a down payment and the financial aspects of buying a home is the first concern,” says Paul Bishop, vice president of research for the National Association of REALTORS®. Fortunately, home affordability is at one of its highest in years and a large inventory of homes on the market provides plenty of options, which is helping first-time buyers find a good home at a great price.

Room to grow. Ken Shuman, Trulia.com spokesman, says that first-time home buyers often find its smart to search for a first home that not only accommodates their needs now but one that can accommodate them in 10 years, too. Space to accommodate growing families will likely be a higher priority than upgrades, such as granite countertops, Shuman says.

Turnkey. Surveys have recently shown first-time home buyers showing a preference for homes that are in move-in condition and in stable neighborhoods, rather than fixer uppers in depressed neighborhoods. In evaluating whether a home has been well-maintained, MacDonald suggests watching for such things as rotten trim on the exterior, dirty air-return ducts or a dirty filter in the HVAC system, or a damaged roof or gutters.

BIG CHANGES COMING FOR APPRAISALS. WHAT RPM HAS DONE TO KEEP YOU AHEAD OF THE COMPETITION.

RPM owns and operates its appraisal services, it’s known as ASI (Appraisal Services, Inc.). Many changes have occurred in the appraisal industry over the last two years with even more to come.

 

CHECK OUT FLYER

Starting September 1, the way appraisers report their findings and the way they deliver a report will change. UAD stands for Uniform Appraisal Dataset which is the first part in a series of changes for how the overall loan is delivered to the GSE’s. They are doing this to make the appraisals more standardized as to what an appraiser might consider good condition in Texas is vastly different than what an appraiser in Connecticut might think. There are a total of 72 additions to the form with 60 being mandatory and 12 being optional. Phrases like neutral, beneficial and adverse will become standard. Very Good, Good and Average will be replaced in condition and quality fields with a 1 through 6 rating with 1 being exceptional and 6 being horrible. ASI has completed courses, seminars and webinars to help educate the appraisers on these changes, assist the underwriters, and to answer your questions when you see the new forms. Appraisals will also have to be delivered in both a PDF and XML format.

Some of the important changes are:

1) FHA and VA are also using the UAD reports but not the delivery method

2) Appraisals MUST be sent to the GSE’s before the loan for conventional and jumbo loans (Not FHA or VA)

3) If the lender orders a field review that review is sent with the loan and not the original appraisal

4) If an appraisal is sent to the GSE’s in the new format incorrectly it will be kicked out and deemed unacceptable

5) GSE’s wont accept a C5 or a C6 rating for condition

6) Any C6 issue makes the whole property a C6 rating unless subject to repair

Make no mistake these are major changes in the appraisal world in both reporting and technology. As a Realtor who uses Zackry Cooper you will have a huge advantage over your competition because we are working on ways to streamline it, and guarantee the reports acceptance into the GSE system.

Here is a link to a webinar if you would like to familiarize yourself with the changes. Click Here

THANK GOD I DIDN’T BUY GOLD AT $400 AN OUNCE

We hope that headline grabbed you. The reason we used it was to bring some perspective to the debate as to whether or not homeownership is a wise investment in today’s troubled market. A family should never look at the purchase of a home simply as a financial investment. It is so much more than that. But, even if we look at it as only an investment, we must look at it in the long term. Let’s use gold as an example.

Gold had dropped from over $400 an ounce to $250 an ounce (a 40% decline) from February 1996 to August 1999. People were so glad they hadn’t bought at $400 an ounce.

Lord William Rees-Mogg, the current Chairman of The Zurich Club, in 1997 said:

“No investment has been so thoroughly exploded as gold; most people think that there will no more be another gold boom than there will be another boom in tulip futures in The Netherlands.”

Everyone knows what happened next. The proclamation of gold’s death was rather premature. Gold rose from $250 an ounce to over $1,500 an ounce in the next twelve years.

If we look at real estate in the long term, we can see that it has been a great vehicle for building family wealth. The Federal Reserve’s Survey of Consumer Finances, conducted once every three years, provides a snapshot of family income and net worth. Their survey has shown every time that homeowners’ net worth far exceeds that of renters. Here is the breakdown of the last several surveys:

1998 – Homeowner net worth exceed renters by 31x

2001 – Homeowner net worth exceed renters by 36x

2004 – Homeowner net worth exceed renters by 41x

2007 – Homeowner net worth exceed renters by 46x

The 2010 survey is not out yet but the National Association of Realtors’ has estimated that number to be approximately 41x in 2010. You may be thinking this is no longer the case based on the current fall in home values which have dropped back to 2000 – 2002 prices.

Harvard University just completed a study that showed:

“Even if homeowner wealth fell back to 1995 levels, it would still be 27.5 times the median for renters.”

Bottom Line

We are not predicting that real estate will see the same levels of appreciation that gold did. However, we do believe that the real estate market will rebound strongly.

“Human beings, by changing the inner attitudes of their minds, can change the outer aspects of their lives.”

-William James: Was a philosopher and psychologist

 

REALTORS:

REALTOR ONLY CALL WITH RICK RUBY’S PARTNER – REETA CASEY

Bring your lunch and join us for an exclusive conference call with Reeta Casey

TOPIC: “Expand Your Prospecting”

(Also: Happy Hours, Expired’s, Open Houses, and Questions/Answers (please prepare questions for Reeta)

WHERE: 2175 N. California Blvd, Ste. 315. Walnut Creek, CA 94596 (Conference Room – 3rd Floor)

WHEN: Wednesday August 3rd, 2011

TIME: 12:00 pm – 1:00 pm (please arrive at 11:30 am)

RSVP Today with Sherrell

Phone: 925-296-3840 or E-mail: sayers@rpm-mtg.com  (Due To Limited Seating You MUST RSVP)

Reeta Casey Website

Zackry Cooper Website

Rick Ruby Website

 

BIG CHANGES COMING FOR APPRAISALS. WHAT RPM HAS DONE TO KEEP YOU AHEAD OF THE COMPETITION

RPM owns and operates its appraisal services, it’s known as ASI (Appraisal Services, Inc.). Many changes have occurred in the appraisal industry over the last two years with even more to come.

CHECK OUT FLYER

Starting September 1, the way appraisers report their findings and the way they deliver a report will change. UAD stands for Uniform Appraisal Dataset which is the first part in a series of changes for how the overall loan is delivered to the GSE’s. They are doing this to make the appraisals more standardized as to what an appraiser might consider good condition in Texas is vastly different than what an appraiser in Connecticut might think. There are a total of 72 additions to the form with 60 being mandatory and 12 being optional. Phrases like neutral, beneficial and adverse will become standard. Very Good, Good and Average will be replaced in condition and quality fields with a 1 through 6 rating with 1 being exceptional and 6 being horrible. ASI has completed courses, seminars and webinars to help educate the appraisers on these changes, assist the underwriters, and to answer your questions when you see the new forms. Appraisals will also have to be delivered in both a PDF and XML format.

Some of the important changes are:

1) FHA and VA are also using the UAD reports but not the delivery method

2) Appraisals MUST be sent to the GSE’s before the loan for conventional and jumbo loans (Not FHA or VA)

3) If the lender orders a field review that review is sent with the loan and not the original appraisal

4) If an appraisal is sent to the GSE’s in the new format incorrectly it will be kicked out and deemed unacceptable

5) GSE’s wont accept a C5 or a C6 rating for condition

6) Any C6 issue makes the whole property a C6 rating unless subject to repair

Make no mistake these are major changes in the appraisal world in both reporting and technology. As a Realtor who uses Zackry Cooper you will have a huge advantage over your competition because we are working on ways to streamline it, and guarantee the reports acceptance into the GSE system.

Here is a link to a webinar if you would like to familiarize yourself with the changes. Click Here

 

TO SAVE HOME VALUES, BILL ASKS BANKS TO RENT FORECLOSURES

As a glut of foreclosures on the market weighs down home values across the country, a bipartisan bill introduced this week in the House proposes a solution to reducing the high inventories: Rent the properties out.

The proposed bill, Neighborhood Preservation Act of 2011 (H.R. 2636), calls on banks and the government-sponsored enterprises–Fannie Mae and Freddie Mac–to start renting out some of their foreclosed properties to reduce REO sales and “stabilize home values and restore confidence in the housing markets.”

The bill would authorize federally chartered institutions to enter into a long-term lease–for up to five years–with the occupant of the property or with another person, and then at the end of the agreement provide an option to buy the home to the tenant.

The bill could allow delinquent borrowers to remain in their homes but they would have to agree to pay rent and still sign over the deed to the bank or GSE, National Mortgage News reports.

According to the bill, this would allow the foreclosed property to remain occupied during the still-sluggish housing market and “preserve the property itself as well as the aesthetic and economic values of neighboring homes and even whole neighborhoods.”

“As Americans across the country are affected by this unrelenting foreclosure crisis, it is imperative that Congress address this issue,” Congressman Gary Miller, R-Calif., who introduced the bill, said in a statement.

 

“If you aren’t fired with enthusiasm, you will be fired with enthusiasm.” -Vince Lombardi: Was a football coach and speaker

 

 

REALTORS:

FREE EXCLUSIVE SPEAKING EVENT ON MONDAY JULY 25, 2011

SPEAKER: Rick Ruby of The CORE Training, Inc. (Also Zack’s personal coach for the last 2 years)

TOPIC: “How To Turn Buyers Into Closed Transactions And Exceed Your Goals for 2011”

Click on image for more information and to RSVP TODAY (Click on Realtor Tab)! (Due To Limited Seating You MUST RSVP)

Zackry Cooper Website

Rick Ruby Website

The CORE Training, Inc. Website

 

FHA’s NEW RULES: MORE PAIN FOR CONDO MARKET

Is the Federal Housing Administration taking a back-door exit away from condos — a key real estate segment in which it’s recently built up market shares of 40 percent and higher in many urban areas?

Could the agency be tightening its rules in order to cut loan volume in the months ahead, potentially putting thousands of unit sellers, buyers, homeowners associations and realty agents in a mortgage-money squeeze?

FHA adamantly denies that it’s doing anything of the sort, and insists that new rules rolled out at the end of last month represent prudent responses to the serious risks the agency’s insurance funds confront.

But condo industry executives and community managers say FHA’s tougher regulations have a wet-blanket effect on associations’ ability — and willingness — to get their projects approved for financings by the agency. Without an entire project certified, potential buyers of units cannot obtain FHA-backed loans, which in turn makes it more difficult for current unit owners to sell and could depress property values.

FHA’s low down payment minimums — 3.5 percent — and relatively generous credit and debt ratio policies have made it the go-to financing source during the past several years for moderate-income buyers who previously would have sought conventional mortgages. With high-cost-area mortgage limits of $729,750 — at least until Oct. 1, when they are scheduled to drop — FHA has even become a player in some upper-end condo communities.

The biggest complaint about the new FHA rules, is the requirement that anyone who signs an application for certification or recertification of a project must assume full responsibility under federal law for the accuracy of every piece of information contained in the submission.

The penalties for subsequent findings that information was inaccurate or omitted can be severe — ranging up to $1 million in fines and 30 years in prison for the worst infractions.

Since the certification package submission covers myriad items that can be difficult to pin down precisely — such as the percentage of units currently occupied by renters on a given date, or whether project documents are in full compliance with every state law and regulation — many association boards and managers are reluctant to stick their necks out to guarantee accuracy of the unknowable under threat of future federal fines.

Condo boards, unit owners and managers also are upset by other rules from FHA, including:

1. A Requirement that no more than 15% of all units in the profject are no more than 30 days delinquent on their condo assessments, including bank-owned (REO) units, which are notorious for nonpayment of fees.

Often condo boards can’t even determine who actually owns a foreclosed unit, said Andrew Fortin of the 30,000-member Community Associations Institute trade group, “so how can FHA expect volunteer condo boards to find this information and collect the assessments?”

Worse yet, he said, most boards or management companies don’t learn about delinquencies on assessments until well after 30 days.

Plus, FHA’s new rule conflicts directly with some state laws, such as in North Carolina, where boards are prohibited from even seeking to collect fees until they are more than 30 days delinquent.

2. A Requirement that not only must condo boards carry fidelity insurance on their officers, but that management companies must carry policies as well.

According to Fortin, that requirement conflicts with state law in Maryland, where condo boards already must purchase fidelity insurance for their management companies. Under a strict reading of the rules, he said, that means management companies will be forced to buy what amounts to double coverage.

3. A variety of technical rules that may hamper condo conversions and so-called gut rehabs.

For example, Philip Sutcliffe, principal of the condominium consulting firm Project Support Services, said FHA’s new rule requiring full, professionally prepared studies of financial reserves will be too expensive for many projects to afford. Sutcliffe said he sometimes wonders whether “anyone at (the U.S. Department of Housing and Urband Development) truly understands how condominiums work in the real world.”

As a consequence of these and other concerns about the new rules, recertifications of existing condo projects for FHA mortgage insurance are lagging. An FHA official confirmed to me that just 1,000 of approximately 12,000 projects eligible have done so in recent months — a no-show rate that critics call ominous.

In response, FHA officials argue that most of the agency’s rules track similar requirements in the conventional financing marketplace. Moreover, they say, at a time when condo projects have taken especially hard hits in the housing downturn — and many projects in places like Florida, Arizona and Nevada have experienced soaring rates of delinquency and foreclosure — they have a duty to protect FHA’s insurance funds against avoidable losses.

Asked whether a calculated phasedown of FHA’s condo volume lurks behind the toughened rules, Lemar Wooley, a spokesman for the agency, said “that is not the case. FHA is committed to continuing its mission of providing affordable, sustainable homeownership opportunities while managing and mitigating risk. Our new condo guidance is consistent with that commitment.”

READ MORE ON THE FHA CONDOMINIUM POLICY GUIDELINES

FHA-APPROVED CONDOMINIUM APPROVED LOOK-UP

 

EXISTING-HOME SALES SLIP, BUT PRICES STABILIZE

Existing-home sales eased in June as contract cancellations spiked unexpectedly, although prices were up slightly, according to the National Association of REALTORS.

Sales gains in the Midwest and South were offset by declines in the Northeast and West. Single-family home sales were stable while the condo sector weakened.

Total existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, declined 0.8 percent to a seasonally adjusted annual rate of 4.77 million in June from 4.81 million in May, and remain 8.8 percent below the 5.23 million unit level in June 2010, which was the scheduled closing deadline for the home buyer tax credit.

Lawrence Yun, NAR chief economist, said this is an uneven recovery. “Home sales had been trending up without a tax stimulus, but a variety of issues are weighing on the market including an unusual spike in contract cancellations in the past month,” he said. “The underlying reason for elevated cancellations is unclear, but with problems including tight credit and low appraisals, 16 percent of NAR members report a sales contract was cancelled in June, up from 4 percent in May, which stands out in contrast with the pattern over the past year.”

Yun cited other factors in the sales performance. “Pending home sales were down in April but up in May, so we may be seeing some of that mix in closed sales for June. However, economic uncertainty and the federal budget debacle may be causing hesitation among some consumers or lenders.”

The national median existing-home price for all housing types was $184,300 in June, up 0.8 percent from June 2010. Distressed homes – foreclosures and short sales generally sold at deep discounts – accounted for 30 percent of sales in June, compared with 31 percent in May and 32 percent in June 2010.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.51 percent in June, down from 4.64 percent in May; the rate was 4.74 percent in June 2010.

REGIONAL PERFORMANCE

Existing-home sales in the Northeast fell 5.2 percent to an annual pace of 730,000 in June and are 17.0 percent below June 2010. The median price in the Northeast was $261,000, up 3.1 percent from a year ago.

Existing-home sales in the Midwest rose 1.0 percent in June to a pace of 1.04 million but are 14.0 percent below a year ago. The median price in the Midwest was $147,700, down 5.3 percent from June 2010.

In the South, existing-home sales increased 0.5 percent to an annual level of 1.86 million in June but are 5.6 percent belowJune 2010. The median price in the South was $159,100, down 0.1 percent from a year ago.

Existing-home sales in the West declined 1.7 percent to an annual pace of 1.14 million in June and are 2.6 percent below a year ago. The median price in the West was $240,400, up 9.5 percent from June 2010.

GEN Y TO LEAD ‘MASSIVE INCREASE IN HOUSING DEMAND’

Watch out for Generation Y: This large, diverse, well-educated generation will drive the housing market recovery over the next 10 years, according to economists with the University of Southern California Lusk Center for Real Estate.

Gen Y (15-32 year olds) boasts about 77.4 million members, which is about equal in size to the baby boomers (46-64 years old). Yet, Gen Y is much more diverse and educated (60 percent of Gen Y goes to college), according to the center, which recently presented its findings at the USC Lusk Center Orange County Executive Briefing.

Stan Ross, Lusk Center Chairman of the Board, says that “baby boomers and Gen Y comprise 50 percent of the population and will soon be part of the largest U.S. wealth transfer ever.”

As more of this age group joins the work force, “they will produce a massive increase in housing demand,” forecasts the USC’s Lusk Center.

However, Ross points out “these kids are concerned. They have watched the stock market, financial markets, and economy wipe out their parents’ retirement plans. As a result, they will choose lower-risk investment strategies.”

 

“Our greatest battles are that with our own minds” -Jameson Frank

 

REALTORS: 

FREE EXCLUSIVE SPEAKING EVENT ON MONDAY JULY 25, 2011

SPEAKER: Rick Ruby of The CORE Training, Inc.  (Also Zack’s personal coach for the last 2 years)

TOPIC: “How To Turn Buyers Into Closed Transactions And Exceed Your Goals for 2011”

Click on image for more information and to RSVP TODAY (click on REALTORS tab)! (Due To Limited Seating You MUST RSVP)

Zackry Cooper Website

Rick Ruby Website

The CORE Training, Inc. Website

 

 CARBON MONOXIDE DETECTOR LAW EFFECTIVE 7/1/11

Don’t forget that there is a new carbon monoxide detector law in effect. Please be aware, this can be an additional fee to your borrowers should they need a re-inspection on their appraisals if the home does not have these installed.

This law required detectors to be installed in every “dwelling unit headed for human occupancy.” The California legislature also modified both the TDS (for residential one-to-four unit real property) and MHTDS (for manufactured homes and mobilehomes) to include a reference to carbon monoxide detector devices.

Every owner of a “dwelling unit intended for human occupancy” must install an approved carbon monoxide device in each existing dwelling unit having a fossil fuel burning heater or appliance, fireplace, or an attached garage.

The applicable time periods are as follows:

(1) For all existing single-family dwelling units on or before July 1, 2011.

(2) For all other existing dwelling units on or before Jan. 1, 2013.

(Cal. Health & Safety Code § 17926(a).)

This new law requires the owner “to install the devices in a manner consistent with building standards applicable to new construction for the relevant type of occupancy or with the manufacturer’s instructions, if it is technically feasible to do so” (Cal. Health & Safety Code § 17926(b)).

The following language comes packaged with carbon monoxide (CO) detectors:

For minimum security, a CO Alarm should be centrally located outside of each separate sleeping area in the immediate vicinity of the bedrooms. The Alarm should be located at least 6 inches (152mm) from all exterior walls and at least 3 feet (0.9 meters) from supply or return vents.

Building standards applicable to new construction are as follows (overview summary only):

· Section R315 et seq. of the 2010 edition California Residential Code (CRC) [effective Jan. 1, 2011] (applicable to new one-to-two family dwellings and townhouses not more than 3 stories and also where work requiring a permit for alterations, repairs or additions exceeding one thousand dollars in existing dwellings units):

Installed outside of each separate sleeping area in the immediate vicinity of the bedroom(s) in dwelling units and on every level including basements within which fuel-fired appliances are installed and in dwelling units that have attached garages.

· Section 420 et seq of the 2010 edition California Building Code (CBC) [effective Jan. 1, 2011] (applicable to other new dwelling units and also where a permit is required for alterations, repairs or additions exceeding $1,000 in existing dwelling units):

Installed outside of each separate sleeping area in the immediate vicinity of the bedroom(s) in dwelling units and on every level including basements within which fuel-fired appliances are installed and in dwelling units that have attached garages.

A violation is an infraction punishable by a maximum fine of $200 for each offense. However, a property owner must receive a 30-day notice to correct first. If an owner who receives such a notice fails to correct the problem within the 30-day period, then the owner may be assessed the fine. (Cal. Health & Safety Code § 17926(c).)

The only disclosure obligations are satisfied when providing a buyer with the TDS or the MHTDS. If the seller is exempt from giving a TDS, the law doesn’t require any specific disclosures regarding carbon monoxide detector devices. (See Cal. Civ. Code §§ 1102.6, 1102.6d.)

The Homeowners’ Guide to Environmental Hazards also will include information regarding carbon monoxide.

All landlords of dwelling units must install carbon monoxide detectors as indicated in Question 4. The law gives a landlord authority to enter the dwelling unit for the purpose of installing, repairing, testing, and maintaining carbon monoxide devices “pursuant to the authority and requirements of Section 1954 of the Civil Code [entry by landlord].”

The carbon monoxide device must be operable at the time that a tenant takes possession. However, the tenant has the responsibility of notifying the owner or owner’s agent if the tenant becomes aware of an inoperable or deficient carbon monoxide device. The landlord is not in violation of the law for a deficient or inoperable carbon monoxide device if he or she has not received notice of the problem from the tenant.

(Cal. Health & Safety Code § 17926.1.)

 

READ MORE ON THE C.A.R WEBSITE (Login Required To Read Details)

 

MORE HOME OWNERS TURN TO ‘HOMESHARING’

Home owners looking for additional income are opening up their homes and renting out spare bedrooms to offset mortgage costs, which has made “homesharing” the latest trend catch on in some parts of the country, particularly in affluent areas.

Homesharing “started where it was mostly elderly people living on fixed incomes that needed to rent out a room to supplement their income or they were frail and needed help in the house. So they would offer a lower rent to somebody that would help,” says Jackie Grossmann, a homesharing coordinator in Deerfield, Ill. “But now it’s really moved to boomers, who have lost [their] savings.”

While baby boomers are looking for roommates to help offset the costs of home ownership, the roommates are looking for inexpensive housing in “homesharing” arrangements for any number of reasons, such as job loss, divorce, job relocation, and more.

Some programs have even sprung up to help play matchmaker to home owners and renters. In the high-priced area of Deerfield, Ill., for example, the Interfaith Housing Center of the Northern Surburbs offers the North Suburban Homesharing, a free service that matches roommates looking for inexpensive housing with home owners seeking extra cash.

REAL ESTATE SALES SLUMP CONTINUES IN JUNE

After stumbling in April and May, existing-home sales continued to slip in June compared to the month before, according to the latest monthly report from the National Association of Realtors.

Completed sales of existing single-family homes, townhomes, condominiums and co-ops dipped 0.8 percent to a seasonally adjusted annual rate of 4.77 million in June from 4.81 million in May, the report said. Sales fell 8.8 percent compared to June 2010, the scheduled closing deadline for a federal homebuyer tax credit program.

Lawrence Yun, NAR’s chief economist, said in a statement that there was “an unusual spike” in contract cancellations last month.

“The underlying reason for elevated cancellations is unclear, but with problems including tight credit and low appraisals, 16 percent of NAR members report a sales contract was canceled in June, up from 4 percent in May, which stands out in contrast with the pattern over the past year,” Yun said.

The national median price for existing homes rose 0.8 percent year-over-year last month, to $184,300. Distressed properties, typically sold at a discount, made up 30 percent of sales in June, down from 31 percent in May and from 32 percent in June 2010, the report said.

 

“Being challenged in life is inevitable, being defated is optional.”

-Roger Crawford: Motivational author and speaker

 

REALTORS:

FREE EXCLUSIVE SPEAKING EVENT ON MONDAY JULY 25, 2011

SPEAKER: Rick Ruby of The CORE Training, Inc. (Also Zack’s personal coach for the last 2 years)

TOPIC: “How To Turn Buyers Into Closed Transactions And Exceed Your Goals for 2011”

Click on image for more information and to RSVP TODAY **Go To REALTORS Tab**!

(Due To Limited Seating You MUST RSVP)

 

Zackry Cooper Website

Rick Ruby Website

The CORE Training, Inc. Website

 

 CARBON MONOXIDE DETECTOR LAW EFFECTIVE 7/1/11

Don’t forget that there is a new carbon monoxide detector law in effect. Please be aware, this can be an additional fee to your borrowers should they need a re-inspection on their appraisals if the home does not have these installed.

This law required detectors to be installed in every “dwelling unit headed for human occupancy.” The California legislature also modified both the TDS (for residential one-to-four unit real property) and MHTDS (for manufactured homes and mobilehomes) to include a reference to carbon monoxide detector devices.

Every owner of a “dwelling unit intended for human occupancy” must install an approved carbon monoxide device in each existing dwelling unit having a fossil fuel burning heater or appliance, fireplace, or an attached garage.

The applicable time periods are as follows:

(1) For all existing single-family dwelling units on or before July 1, 2011.

(2) For all other existing dwelling units on or before Jan. 1, 2013.

(Cal. Health & Safety Code § 17926(a).)

This new law requires the owner “to install the devices in a manner consistent with building standards applicable to new construction for the relevant type of occupancy or with the manufacturer’s instructions, if it is technically feasible to do so” (Cal. Health & Safety Code § 17926(b)).

The following language comes packaged with carbon monoxide (CO) detectors:

For minimum security, a CO Alarm should be centrally located outside of each separate sleeping area in the immediate vicinity of the bedrooms. The Alarm should be located at least 6 inches (152mm) from all exterior walls and at least 3 feet (0.9 meters) from supply or return vents.

Building standards applicable to new construction are as follows (overview summary only):

· Section R315 et seq. of the 2010 edition California Residential Code (CRC) [effective Jan. 1, 2011] (applicable to new one-to-two family dwellings and townhouses not more than 3 stories and also where work requiring a permit for alterations, repairs or additions exceeding one thousand dollars in existing dwellings units):

Installed outside of each separate sleeping area in the immediate vicinity of the bedroom(s) in dwelling units and on every level including basements within which fuel-fired appliances are installed and in dwelling units that have attached garages.

· Section 420 et seq of the 2010 edition California Building Code (CBC) [effective Jan. 1, 2011] (applicable to other new dwelling units and also where a permit is required for alterations, repairs or additions exceeding $1,000 in existing dwelling units):

Installed outside of each separate sleeping area in the immediate vicinity of the bedroom(s) in dwelling units and on every level including basements within which fuel-fired appliances are installed and in dwelling units that have attached garages.

A violation is an infraction punishable by a maximum fine of $200 for each offense. However, a property owner must receive a 30-day notice to correct first. If an owner who receives such a notice fails to correct the problem within the 30-day period, then the owner may be assessed the fine. (Cal. Health & Safety Code § 17926(c).)

The only disclosure obligations are satisfied when providing a buyer with the TDS or the MHTDS. If the seller is exempt from giving a TDS, the law doesn’t require any specific disclosures regarding carbon monoxide detector devices. (See Cal. Civ. Code §§ 1102.6, 1102.6d.)

The Homeowners’ Guide to Environmental Hazards also will include information regarding carbon monoxide.

All landlords of dwelling units must install carbon monoxide detectors as indicated in Question 4. The law gives a landlord authority to enter the dwelling unit for the purpose of installing, repairing, testing, and maintaining carbon monoxide devices “pursuant to the authority and requirements of Section 1954 of the Civil Code [entry by landlord].”

The carbon monoxide device must be operable at the time that a tenant takes possession. However, the tenant has the responsibility of notifying the owner or owner’s agent if the tenant becomes aware of an inoperable or deficient carbon monoxide device. The landlord is not in violation of the law for a deficient or inoperable carbon monoxide device if he or she has not received notice of the problem from the tenant.

(Cal. Health & Safety Code § 17926.1.)

READ MORE ON THE C.A.R WEBSITE (Login Required To Read Details)

 

FANNIE, FREDDIE MAY LOSE TOP CREDIT RATING

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.

 

HELP ON THE WAY FOR UNDERWATER HOME OWNERS?

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.”

“Whatever you can do, or dream you can, begin it. Boldness has genius, power and magic in it. Begin it now.” -Johann Wolfgang Von Goethe: Was a German poet, playwright, novelist

REALTORS:FREE EXCLUSIVE SPEAKING EVENT ON JULY 25, 2011

SPEAKER: Rick Ruby of The CORE Training, Inc.

(Also Zack’s personal coach for the last 2 years)

TOPIC: “How To Turn Buyers Into Closed Transactions And Exceed Your Goals for 2011”

Click on image for more information and to RSVP TODAY!

(Due To Limited Seating You MUST RSVP)

 

Zackry Cooper Website

Rick Ruby Website

The CORE Training, Inc. Website

CALL TO ACTION FOR BUYERS!!! FHA 2011 LOAN LIMITS

Federal Housing Finance Agency (FHFA) has announced Temporary High Balance Loan Limits, scheduled to expires on December 31, 2010, were extended to September 30, 2011.

This is not dictated by case number order date! You will need to have all FHA loans with current high balance loan limits FUNDED BY AUGUST 15th, 2011 to ensure enough time to get the loan insured. RPM will have additional resources dedicated to the loans that are impacted and make them a priority in insuring. We will relay any additional information provided to us.

For mortgage loans originated after September 30, 2011, revised limits will apply. The maximum limit is $625,000 for a 1-unit property in the continental United States, established under the Housing and Economic Recovery Act, and referred to by Fannie Mae as “permanent.”

Informational Material Links Below:

Loan Limits Expiration FAQs

Confirmation of Conventional Loan Limits for 2011

FHA Maximum Conforming Loan Limits

Potential to FHA Single-Family Loan Limits beginning October 1, 2011

SELLING YOUR HOUSE? WAITING MAY NOT MAKE SENSE

There have been some bright spots in the residential real estate market over the last couple of months. Several price indices have reported a stabilization of prices and some regions have even shown small levels of appreciation. This has led some to believe that we may have reached a bottom for home values. We must realize that what we are actually experiencing is a ‘window of opportunity’ as the banks are delayed in bringing certain inventories of distressed properties to the market. Let’s look at what others are reporting:

Bloomberg Businessweek:

“The crux of Simon’s analysis is that the loose lending practices seen during the housing bubble allowed 5 million renters to become homeowners, and that the market is in the protracted process of evicting this group. He believes housing prices will decline 6 percent to 8 percent nationally, with 6 million to 7 million more foreclosures yet to come.”

Yahoo Finance:

“The problem with the real estate market remains excess inventory. Based on Shilling’s research, there are 2 million to 2.5 million excess homes in the country – a supply that will take 4-5 years to work-off. The result: Housing prices will fall another 20% and underwater mortgages will balloon from 23% to 40%, he says.”

Housing Wire:

“Both warmer weather and the drop in distressed sales percentage have contributed to recent home price improvements. However, given the disappointing pace in housing demand recovery, both factors may turn against us in the coming winter and push home prices lower again…

This supply-demand imbalance affirmed JPMorgan analysts’ estimate of a further 4% drop in home prices from the first quarter of 2011 to a new bottom next year.”

DS News:

“Home prices have gotten a little bit of a boost in recent months thanks to a seasonal uptick in market activity. Most analysts, however, expect further declines to characterize the later part of the year and possibly extend into next year, largely because of the huge supply of foreclosures on the market.”

Bottom Line

If you are thinking of selling in the next twelve months, you would probably do much better if you sold your house sooner rather than later.

WHY DO PEOPLE ACTUALLY BUY A HOME?

It seems that every time we talk about real estate today the conversation immediately goes to the financial aspects of buying a home. Where are prices headed? Where are interest rates headed? Should I wait to try and get a ‘better buy’? Should I wait until I can get a ‘steal’?

The odd thing about all these questions is that survey after survey keeps telling us that price is not the reason families actually buy a home. When money is considered at all, it is in light of not paying rent to a landlord. Let’s look at two recent surveys as examples:

National Housing Survey

The top five reasons given in the survey for buying a home, in order, are:

• It means having a good place to raise children and provide them with a good education
• You have a physical structure where you and your family feel safe
• It allows you to have more space for your family
• It gives you control of what you do with your living space (renovations and updates)
• Paying rent is not a good investment

The Myers Research and Strategic Services Survey

The top five reasons given in the survey for buying a home, in order, are:

• Home ownership provides a stable and safe environment for children and other family members
• Home ownership means the money you spend on housing goes towards building equity, rather than to a landlord
• Home ownership creates the opportunity to pay off a mortgage and own your home by the time you retire
• Home ownership creates the opportunity to live in a neighborhood that you enjoy
• Home ownership allows you the right to decorate, modify and renovate your home as you see fit

Bottom Line

Price dominates conversation when we talk about buying a home. However, when it comes down to it, we actually buy for the same reasons our parents and grandparents did – we want a better lifestyle for ourselves and our families.

CALL TO ACTION FOR BUYERS!!! 

FHA 2011 LOAN LIMITS

 

Federal Housing Finance Agency (FHFA) has announced Temporary High Balance Loan Limits, scheduled to expires on December 31, 2010, were extended to September 30, 2011.

This is not dictated by case number order date! You will need to have all FHA loans with current high balance loan limits FUNDED BY AUGUST 15th, 2011 to ensure enough time to get the loan insured. RPM will have additional resources dedicated to the loans that are impacted and make them a priority in insuring. We will relay any additional information provided to us.

For mortgage loans originated after September 30, 2011, revised limits will apply. The maximum limit is $625,000 for a 1-unit property in the continental United States, established under the Housing and Economic Recovery Act, and referred to by Fannie Mae as “permanent.”

Informational Material Links Below:

Loan Limits Expiration FAQs

Confirmation of Conventional Loan Limits for 2011

FHA Maximum Conforming Loan Limits

Potential to FHA Single-Family Loan Limits beginning October 1, 2011

 

“As we increasingly master our perceptions, beliefs, and thought/feeling patterns, we magnetically attract that which we most desire.” 

-Luanne Oakes: Was a holistic doctor, author and composer

 

 

NEWS HEADLINES & MORE

A report in the Wall Street Journal said two Representatives plan to introduce legislation to merge Freddie & Fannie and restructure the company into a government-held corporation. Most doubt that anything will happen until after the 2012 elections. It is one idea out of many competing plans for housing finance, and there is certainly no consensus on whether or not the government should offer a guarantee. But the plan has some genetics that we may see in future proposals. “Frannie” would be a utility-like entity and phase out government-controlled Fannie Mae and Freddie Mac, would purchase mortgages and repackage them as government-backed securities, and have no shareholder investors.

Fannie Mae released news for servicers. Specifically, it addressed HUD’s Emergency Homeowners’ Loan Program (the EHLP is designed to provide mortgage payment relief to eligible borrowers experiencing a reduction in income resulting from involuntary unemployment or underemployment due to adverse economic conditions or a medical emergency.) For details go to FannieEHLP.

This morning we start off with the 10-yr note yield at 2.90% after closing around 2.92% Monday. MBS prices improved by roughly .250 on current coupon products. Rates are being helped by uncertainty over the European debt crisis, what the US will do with its debt ceiling (does it really matter, and isn’t this debt ceiling jabbering taking our eyes off the real problem – the debt?), when Congress will get down to the business of really cutting the budget and what will be cut, and how we will grow our economy moving forward. Most believe that eventually rates will go up because of inflation, or in order to attract investment dollars, but for now we have the “flight to safety” bid.

Today starts yet another Treasury auction with $32 billion 3yrs, $21 billion 10yrs, and $13 billion 30yrs. We’ve already had the International Trade numbers for May – usually not a big market mover, and the deficit went up to $50.2 billion – and later we’ll see the minutes from the last FOMC meeting at 2PM EST. The yield on the 10-yr is down to 2.90% and MBS prices are a shade better.

 

THE DEVIL IS IN THE DETAILS

 

DISTRESSED PROPERTY INFOGRAPHIC

Info on Shadow Information: CoreLogic

Info on inventory/sales ratio: LPS

Info on discounts on short sales and foreclosures: RealtyTrac

 

SOME HOAs FORCLOSING ON RESIDENTS

While banks are usually the ones who go after delinquent home owners, more homeowners’ associations (HOAs) around the country are deciding to take on that power too in fighting against home owners who have stopped paying their HOA fees.

For communities governed by a homeowners’ association, which one in five communities are, more HOAs are discovering they have a power they have ever rarely acted upon until now – the right to foreclose on residents who stop paying fees.

For example, a condo complex in Fort Pierce, Fla., for 55-and-older residents was once a desirable area with condos once fetching nearly $80,000 four years ago but now sell for as little as $3,000. The HOA levied $6,000 assessments on its residents for much-needed repairs in the complex and when some residents didn’t pay, the HOA foreclosed on them, even if they didn’t owe the bank anything.

“The treacherous part is that homeowners’ associations are acting like a local government without restraints, and they have this extraordinary power,” Marjorie Murray, a lawyer and founder of the Center for California Homeowner Association Law, told the Associated Press.

If HOAs need to do major repairs, the board can levy a “special assessment” on top of its regular dues. When a home owner fails to pay, all of the home owners then have to step up to pick the costs.

“What many people didn’t realize when they bought their homes was that the fine print gave the association the right to foreclose – even over a few hundred dollars in unpaid dues,” according to an article by the Associated Press. “All the association board has to do is alert its attorney to place a lien on the property to start the process. The home can then be auctioned by the board until the bank eventually takes ownership. Home owners typically have no right to a hearing.”

About 65 percent of HOAs have reported delinquency rates higher than 5 percent, according to a September survey by the Community Association Institute.

 

10 BEST-PERFORMING MAJOR HOUSING MARKETS

Ten of the highest performing major market metros are expected to improve their performance over the first half of the year, with five of the top 10 even expected to see modest gains, reports Clear Capital in its latest monthly Home Data Index.

While housing prices in the first half of the year were mostly negative among the metro areas, Clear Capital says the market is showing signs of stabilizing.

Top Performers

The following are the highest performing major markets based on first half 2011 data (January through June) and second half forecast, according to Clear Capital.

1. Washington, D.C.-Arlington, Va.

2. New York-Long Island, N.Y.-No. New Jersey, N.J.

3. Orlando

4. Dallas-Fort Worth-Arlington, Texas

5. San Francisco-Oakland-Fremont, Calif.

6. Boston-Cambridge-Quincy, Mass.

7. Honolulu

8. San Diego-Carlsbad-San Marcos, Calif.

9. Rochester, N.Y.

10. Memphis, Tenn.

Yet, only five of these markets are expected to boast home price gains in the second half of 2011: Washington, D.C., New York, Orlando, Dallas, and San Francisco, according to Clear Capital.

Worst-Performing Markets

Meanwhile, the lowest performing markets were Virginia Beach-Norfolk-Newport News, Va.; Cleveland-Elyria-Mentor, Ohio; and Minneapolis-St. Paul-Bloomington, Minn., according to Clear Capital.

“While most individual markets are also projected to post losses for the year, it is clear prices have begun to level off and are not exhibiting as much volatility as we’ve seen since the downturn began,” says Alex Villacorta, director of research and analytics at Clear Capital.