Fannie Mae Changes Commission Structure for Short Sales
Fannie Mae has now announced that effective March 1, 2009, the approval and closing of short sales will not be conditioned on the willingness of the listing firm to alter its fee arrangement with the borrower, as long as the total commission does not exceed 6%. The official guideline is set out below.
No Negotiation of Preforeclosure Sales Commission
Servicing Guide, Part VII, Section 504.02: Contacting Selected Borrowers
Effective March 1, 2009, closing of preforeclosure sales may not be conditioned upon a reduction of the total commission to be paid to real estate agents to a level below what was negotiated by the listing agent with the borrower, unless the fee exceeds 6 percent of the sales price of the property in the aggregate. Servicers are reminded that they must continue to obtain any approvals that may be required by interested third parties in connection with preforeclosure sales.
Best and Worst Real Estate Markets in the USA
I came across this article on yahoo and thought that it looked very interesting. Obviously any real estate market is very local, however this gives an overview of what is going on across the country as of February 26th.
http://finance.yahoo.com/real-estate/article/106645/10-Best-and-10-Worst-US-Housing-Markets
Phishing on mobile = SMiShing
Trying to get people to give up their identities comes to mobile [via CNET News]
Homeowner Affordability and Stability Plan
Market is Showing Signs of Rebounding…..
It is very important to realize that real estate trends are very local in nature as opposed to being national. However, signs of a cyclical turnaround for housing are on the upswing. Sales are up sharply in many of the hardest-hit markets, and prices are firming in many others. Last week, Dr. Mark Zandi, chief economist for Moody’s Economy.com, surprised analysts by announcing that “the bottom of the housing downturn is in sight for the nation.” Just days later the Wall Street Journal — which had been among the most pessimistic of major U.S. dailies — ran a prominent article with this headline: “For some, it’s finally time to dive into the housing market.”
Mortgage rates continue to hover near historic lows. According to the Mortgage Bankers Association, thirty year fixed rates last week averaged 5.2 percent, down from 5.3 percent the week before. Fifteen year rates average a flat five percent. Why? Because pent-up demand is strong, affordable financing is there for buyers with decent credit and a down payment, and improved federal tax credit incentives make the equation even better.
American Recovery and Reinvestment Act of 2009
For conventional and FHA loans: the Act temporarily reverts the current loan limits back to the loan amounts/levels allowed in 2008 with the Economic Stimulus Act.
FYI – After the President signs the bill into law, there are still three things that have to happen before banks will be able to start accepting applications with higher loan amounts:
1. The Agencies (Fannie Mae and Freddie Mac) and FHA must determine whether pricing, policy and/or delivery requirements will be changed.
2. The Agencies and FHA must communicate their requirements to mortgage lenders.
3. Each lender must identify impacts caused by the Agencies’ and FHA’s requirements and implement the changes as they see fit.
General Tax Deductible Occurrences According to the IRS
With any tax issue, it is always best to consult your professional tax adviser prior to taking the deductions. However these are a few very general guidelines that may come in helpful. As we approach the April 15th deadline for filing these are some items that you may want to share with your clients to consider.
You can generally claim an itemized deduction for:
1) Interest on up to $1 million of mortgage debt used to acquire or improve a first residence (and a second residence if you have one).
2) Interest on up to $100,000 of home equity debt secured by a first (or second) residence.
3) Real estate property taxes on as many personal residences as you own.
Stimulus Bill Passes Congress – Expected to be Signed Tuesday 2/17
The House and the Senate agreed on a compromise $789 billion fiscal stimulus plan, which passed through Congress over the weekend. The bill passed the House of Representatives 246-183. The bill did squeak through the Senate 60-38. Sherrod Brown (D) cast the last vote in the Senate to pass the bill after flying from Ohio where he was mourning the death of his mother earlier this week.
The Obama administration estimates that the plan will create 3.5 million jobs. Both the House and the Senate had passed versions which were larger than the final compromise plan, and the reduction in scope helped mortgage markets. A smaller plan means that the government will have to issue less debt. President Obama is expected to sign the bill into law Tuesday.
More Details on the $8,000 Tax Credit for 1st Time Buyers
Although this law has yet to be passed this information sheds some additional light on what Buyers can expect. It is proposed that this credit will be retroactive back to January 1, 2009 – so many Buyers may be eligible for the tax credit and don’t even know it. As with any tax credit there are rules and regulations of who will qualify and for how much.
First-time buyers are defined as those who haven’t owned a house for at least three years who buy a home between the start of this year and the end of November. 2009. The credit of 10 percent of the value of a home, up to $8,000, would cost the government an estimated $6.6 billion.
The credit would start phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers would have to repay the credit if they sold their homes within three years. The National Association of Realtors projects the change will stimulate an additional 200,000 home sales.
1st Time Buyers Could Claim $8,000 Tax Credit
In an effort to cut the total cost of the economic stimulus package, a $15,000 tax credit for anybody buying a home over the next year was dropped; INSTEAD, first-time homebuyers could claim an $8,000 credit for homes bought by the end of August, 2009. Car buyers could deduct the sales tax they paid on a new car but not the interest on their car loans. Any first time Buyers that are on the fence, may want to get very serious about looking sooner rather than later in order to take advantage of this provision if it is passed.
Economic stimulus legislation at the heart of President Barack Obama’s recovery plan is on track for final votes Friday in the House and Senate after a dizzying final round of bargaining that yielded agreement on tax cuts and spending totaling $789 billion. The total spending package was cut down from what was originally proposed. Hopefully Congress carefully considered where the money is going and did not play politics with the economic health of this country. Only time will tell for sure…..
