By Stacey Moncrieff, editor in chief, REALTOR® Magazine
Happy New Year, everyone!
As usual, we’re ringing in the new year with a lot of unfinished business (health care reform, financial institution reform, and so on). One thing that was finally settled, however – after years of debate — was the federal government’s changes to the Good Faith Estimate and HUD-1.
Not so fast. It’s hard to find people in the real estate business, particularly mortgage brokers, who are happy with the changes. Wes Cordeau of Houston wrote to me in response to an article in REALTOR® Magazine:
“Unfortunately, the new GFE does not address two points of major importance: 1) How much to close and 2) How much is the monthly payment? In fact, the new GFE addresses closing costs in such a way as to confuse the borrower immensely, because it addresses the costs as ‘Total Settlement Charges” and does not include some important offsets, yet makes us include items that are historically paid by the seller. On page 1, it addresses the monthly payment in two sections–one concerning only principle, interest, and mortgage insurance and the other addressing only payment of escrows for taxes and property insurance. This is more confusing to the consumer! Everyone in this business understands that taxes, insurance, and HOA fees can can add hundreds to the monthly payment, yet they’re not addressed clearly in the GFE.
The fact that a three-page document has 42 pages of explanatory handouts and 51 pages of FAQs (four per page) tells me that this is the most ill-designed form I have ever seen!”
Although I haven’t experienced the forms as a consumer, having listened to Phil Schulman’s 90-minute explanation at NAR in San Diego (worth the time; you can access it at REALTOR.org’s RESPA page), I agree with Wes that the “simplified” forms raises as many questions as answers. Yes, the language is generally more clear, but I wish HUD had done some focus groups with consumers and real estate practitioners before they gave the forms the green light.
What do you think? Are the new GFE and HUD-1 an improvement over what we had before? Or are they going to cause new problems and delays at the closing table? What changes would you recommend?
Note: REALTOR® Magazine on Jan. 13 completed a video walk-through of the new GFE and HUD-1. Watch the how-to video to get a better understanding of how the forms are to be filled out.
By Brian Summerfield, Online Editor, REALTOR® Magazine
There was a lot of ground covered during the Board of Directors meeting Monday at the 2009 REALTORS® Conference & Expo. Here are some of the highlights:
• The REALTOR® Property Resource (RPR): Attendees got a guided tour of this impressive new site, which ultimately aims to cover pretty much every property in the United States. RPR will be a massive database that will allow NAR members (and only NAR members) to search properties across numerous criteria, from school districts to tax info. Users will also be able to gauge the value of a property based on home improvement projects, site conditions, and comparables. Call it contemporary. Call it cutting edge. Just don’t call it an MLS. Continue reading »
By Robert Freedman, Senior Editor, REALTOR® Magazine
There’s a temptation among buyers hoping to land a good deal with a short sale to avoid committing themselves with money and effort until the seller’s lender gives its OK, but that’s a sure-fire way to ensure the deal won’t close, short-sales trainer Lynn Madison said Sunday at the 2009 REALTORS® Conference & Expo.
Lenders are too backlogged and have too much to lose to consider offers whose buyers haven’t provided earnest money, had an inspection conducted, or applied for financing, said Madison, who help devise and also teaches classes for NAR’s new Short Sales and Foreclosures Certification Program (SFR).
Doing all of these things—along with submitting a reasonable offer—can improve your client’s chances greatly. This is not the time to low-ball on a property whose value has already deeply plunged, she said. Continue reading »
By Robert Freedman, Senior Editor, REALTOR® Magazine
Executives from some of the largest brokerages in the country expect to see their sales grow 6-8 percent in 2010 and home prices to start heading up about 3 percent, REALTORS® heard in a state of the real estate industry discussion Saturday at the 2009 NAR Conference & Expo.
John L. Scott Real Estate chairman and CEO J. Lennox Scott said expansion of the tax credit to include repeat buyers will help boost middle-market sales next year, although mortgage financing above the $417,000 non-jumbo conforming loan limit will remain a challenge. “The repeat tax credit will at least start a conversation about buying” among existing home owners, Scott said. Continue reading »
By Jared James, Guest Contributor
What a night it was at REALTOR® Magazine’s YPN exclusive, invitation-only event on the pool deck of the Hotel Solamar. Just when I started thinking that a rooftop might not have been the best place for anyone who enjoys mingling without goose bumps all over their body, we were greeted by conveniently placed heat lamps and fire pits that not only added to the modern feel, but also ensured that everyone stayed warm and comfortable.
I didn’t get to talk to as many people as I would have liked, but of those I did get to interact with, it was nice to see a diversification of experience and levels of success. In this summit of the “who’s who” of young people in real estate, I was surrounded by past and present 30 Under 30 honorees, TV producers, and tomorrow’s up-and-coming stars. One moment I was talking to a charming lady from a resort destination in Idaho, and the next minute I was greeted by an agent from Beverly Hills, Calif. There was one thing that I found in common with each and every agent that I came in contact with, though, and that was that they all had a curiosity and hunger to learn how to better succeed in today’s changing market. Continue reading »
By Sarah Trzepacz and Jennifer Cavendish
In a conference this size, you have to make choices about the sessions you attend. The cool thing is that even when you miss a session, you don’t necessarily miss the lesson. Take today’s lunch for example, when we grabbed a bite at the San Diego Convention Center. While sharing a communal table, we stumbled into an energetic conversation among several REALTORS® who had just attended the “Mobile Technology Guide for 2010″ session with Max Pigman.
They shared their excitement about the business potential of technology and social media tools, and discussed how they could be used to build relationships with clients new and old. While several already used sites like Facebook and Twitter in their personal lives, none had yet deployed them as business tools. However, inspired by Pigman’s presentation, they were all enthusiastic about taking the leap. Continue reading »
By Brian Summerfield, Online Editor, REALTOR® Magazine
In an address to hundreds of REALTORS® at the 2009 NAR Conference & Expo Saturday afternoon, FHA Commissioner David Stevens offered a fervent defense of the organization’s financials. He specifically addressed the negative press surrounding the FHA’s recent audit, which showed part of its capital reserves below congressionally mandated levels.
Stevens distinguished the FHA’s capital reserves for unexpected losses from its regular reserve fund, which remains above 2 percent. Together, the two funds equal almost 4 percent in reserves. “We’ve come through the 100-year flood,” he said. “Despite the crisis, FHA is still standing with $31 billion in capital, $3.5 billion more than it had a year ago.” Continue reading »
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