Licensed Personal Assistants for Oregon Real Estate Brokers

Only a principal broker can hire a licensed personal assistant

By Jeff Sorg, OnlineEd Blog

(June 11, 2018)

(PORTLAND, OR) Jeff Sorg, OnlineEd – A licensed personal assistant can carry out the same activities as the employing principal broker.

The principal broker should enter into a written agreement with the assistant defining the direct supervision and control that the principal broker will have over the assistant.

The compensation program for a licensed personal assistant can be a salary, commission, or a combination of both, just so long as the agreement has authorized the method. The company is also required to have a written office policy for the supervision and control of a licensed personal assistant, and to enter into written agreements with all principal brokers who employ licensed personal assistants.

The written agreement between an employing principal broker and a licensed personal assistant should include the following:

  • The name of the real estate business;
  • The parties to the agreement;
  • The duration of the agreement and a provision for its termination;
  • The employment status of the licensed personal assistant;
  • The name of the principal real estate broker(s) with whom the licensed personal assistant is associated, along with reference to written office policies and agreements establishing supervision and control of the licensed personal assistant;
  • The duties and responsibilities of the licensed personal assistant, including any limitations on their ability to represent clients on behalf of the principal broker;
  • The manner and means by which the licensed personal assistant is to be compensated, including reference to any principal broker authorization; and if necessary
  • A provision that a licensed personal assistant shall in all instances have the same agency relationships with clients as the principal broker.

Only a principal broker can hire a licensed personal assistant.

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OnlineEd blog postings are the personal opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Registering Your Business Name with the Oregon Real Estate Agency

Before a business can begin operating as a real estate business, a principal broker licensee must register the business with the Oregon Real Estate Agency

By Jeff Sorg, OnlineEd Blog

(May 27, 2018)

(PORTLAND, OR) Jeff Sorg, OnlineEd- Before a business can begin operating as a real estate business, a principal broker licensee must register the business with the Oregon Real Estate Agency to operate under the principal broker’s license; only a principal broker can operate a real estate business. A principal broker can engage in real estate activity as an individual or act as a supervisor of other principal brokers, brokers, and property managers whose licenses are associated with the principal broker.

To earn a principal broker license, a broker must have three years real estate experience as a broker and complete a required minimum 40-hour educational course called Brokerage Administration and Sales Supervision (BASS) that is provided by a Real Estate Agency Approved Provider. Also, the licensee must pass a state Principal Broker licensing examination administered by PSI Exam Services.

Once the requirements for becoming a principal broker have been met, the applicant can apply for the appropriate real estate license to operate a business. Oregon law requires that if the applicant is going to conduct a real estate business in a name other than the applicant’s legal name, the applicant must register the name with the Oregon Business Registry. The registration can take any of the organizational forms previously discussed. To comply with REA name registration requirements, the applicant must provide the real estate commissioner with the following:

  • The business name under which the licensee wishes to conduct business.
  • The written authority by which the licensee is authorized to use the business name (example: a copy of a corporate certificate, a copy of an ABN registration, etc.).
  • A statement by the Oregon Secretary of State that if an ABN is used, the name is not the same or deceptively similar to the name of any other real estate business in Oregon.
  • Once registered, the REA will place the business name on the license of the principal broker.

The REA requires the annual renewal of registered business names. The Agency has developed administrative rules for the business name renewal process. These rules are found in Oregon Administrative Rules, Chapter 863, Division 14, Sections 0095 and 0097 as they apply to principal real estate brokers, and Chapter 863, Division 24, Section 0095 as they apply to property managers. The next section is a review of these rules.

The statutory requirements the Agency is to use to develop the renewal rules are outlined in the added language of Senate Bill 67 in ORS 696.026, Section 5, (3), (4) and (5), and say the renewal system must establish:

  • the form and content of the renewal application;
  • the schedule for annual renewals of registered business names; including the date of the registered business name expiration; and
  • the procedures for renewing a registered business name.

Failure to renew a registered business name and pay the required fees by the expiration of the registration will result in:

  • the expiration of the registered business name;
  • the inactivation of all associated licensees; and
  • the inactivation of all associated branch offices.

When registering a registered business name, the licensee must provide the name of the principal broker or the property manager who is responsible for:

  • maintaining the registered business name;
  • registering branch offices;
  • notifying the Agency of opening and closing clients’ trust accounts;
  • renewing the registered business name; and
    updating addresses.

The Real Estate Commissioner may by rule provide an opportunity for the late renewal of an expired registered business name.

Note: When the form of business organization is a corporation, the corporation must have at least one principal broker. When the organizational form is a limited liability company, all of its owners must be licensed.

Note: When a nonlicensed person or a broker licensee has an ownership interest in a real estate business, the business must register with the REA under the name of a principal broker. The principal broker cannot allow a non-licensed or licensed broker-owner to control or supervise the professional real estate activity of any affiliated licensees.

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OnlineEd blog postings are the personal opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Finding an Affordable Home Can Feel Increasingly Out of Reach

A single homebuyer would need to save for nearly 11 years to reach a 20 percent down payment on the typical U.S. home

By Jeff Sorg, OnlineEd Blog

(February 17, 2018)

SEATTLE /PRNewswire/ — In today’s highly competitive housing market, finding an affordable home can feel increasingly out of reach, especially for singles.

A single homebuyer would need to save for nearly 11 years to reach a 20 percent down payment on the typical U.S. home, according to a new Zillow® analysis. However, for married or partnered couples, it would take less than five years. In San Jose, California, a single buyer would need more than 30 years to save for a down payment – longer than the lifespan of a typical home loan.

Zillow’s analysis combined home values and income data from Census to estimate how long it would take for both an individual and couple to save for a 20 percent down payment on the median-priced home, assuming they saved 10 percent of their income every year.

Single buyers typically have a smaller budget than couples, which leaves them with fewer homes to choose from and limits them to the most in-demand portion of the housing stock. The number of homes for sale is limited across the country, down nearly 11 percent over the past year, and nearly 18 percent for the least expensive homes. A single person could afford to buy less than half (45 percent) of the U.S. housing stock, compared to a married or partnered couple, who could afford 82 percent of all homes.

“Nearly two-thirds of Americans agree that buying a home is a central part of living the American Dream, but for unmarried or un-partnered Americans, that dream is increasingly out of reach,” said Zillow senior economist Aaron Terrazas. “Single buyers typically have more limited budgets, which means they are likely competing for lower-priced homes that are in high demand. Having two incomes allows buyers to compete in higher priced tiers where competition is not as stiff.”

The difference between what a single person could afford compared to a couple is greatest in Portland, Oregon, and Sacramento, California. In Portland, 73 percent of homes are affordable to a couple, but only 6 percent are affordable to a single buyer. For Sacramento buyers, a couple could afford 75 percent of homes while a single homebuyer could afford 8 percent of homes.

Single buyers will have it easiest in Indianapolis, where saving for a down payment takes less than eight years, and they can afford the highest share of homes among the largest American housing markets.

Years to Save for a
Down Payment

Percent of Housing
Stock Affordable

Maximum Value of
Affordable Home

Median Household
Income

Metropolitan Area

 Married /
Partnered

 Single

 Married /
Partnered

 Single

 Married /
Partnered

 Single

 Married /
Partnered

 Single

United States

4.6

10.8

82

45

$412,736

$176,098

$80,800

$34,500

New York-Northern New Jersey

7.5

18.8

64

10

$521,518

$208,055

$ 103,000

$41,200

Los Angeles-Long Beach-Anaheim, CA

13.4

26.8

24

2

$438,458

$222,589

$86,000

$42,800

Chicago, IL

4.2

10.2

91

48

$486,310

$197,020

$95,000

$39,000

Dallas-Fort Worth, TX

4.4

9.6

90

54

$440,698

$205,047

$87,800

$40,000

Philadelphia, PA

4.2

10.9

92

44

$491,885

$193,877

$99,000

$38,000

Houston, TX

4.0

8.8

91

58

$438,272

$197,571

$85,000

$39,000

Washington, DC

5.8

12.4

82

34

$652,892

$303,901

$ 129,000

$60,000

Miami-Fort Lauderdale, FL

6.6

13.9

73

31

$361,991

$172,508

$71,000

$33,700

Atlanta, GA

3.8

8.3

90

60

$440,196

$205,081

$87,000

$40,000

Boston, MA

6.8

17.6

74

10

$587,535

$228,239

$ 116,000

$45,200

San Francisco, CA

12.6

27.8

33

2

$656,277

$286,329

$ 128,000

$58,000

Detroit, MI

3.0

8.0

96

60

$453,958

$164,167

$87,400

$32,300

Riverside, CA

8.6

17.5

65

11

$367,681

$177,581

$72,300

$35,300

Phoenix, AZ

5.7

11.7

84

38

$393,648

$194,090

$77,500

$38,000

Seattle, WA

7.6

17.1

68

12

$529,317

$234,656

$ 103,200

$46,000

Minneapolis-St Paul, MN

4.6

11.1

93

39

$512,526

$209,175

$ 100,000

$41,000

San Diego, CA

11.0

22.2

40

3

$471,840

$234,123

$93,000

$46,100

St. Louis, MO

3.3

8.1

95

63

$443,217

$179,537

$88,000

$35,300

Tampa, FL

4.7

10.5

87

45

$360,353

$163,258

$71,000

$32,200

Baltimore, MD

4.6

11.2

91

42

$562,327

$229,242

$ 110,000

$45,000

Denver, CO

7.0

14.5

79

17

$495,133

$238,822

$98,000

$47,000

Pittsburgh, PA

3.1

8.1

96

63

$429,967

$162,840

$83,650

$32,000

Portland, OR

7.6

16.8

73

6

$456,201

$204,963

$89,700

$40,400

Charlotte, NC

4.0

9.5

89

51

$402,000

$172,054

$80,000

$34,000

Sacramento, CA

7.5

17.0

75

8

$459,278

$201,205

$90,000

$40,000

San Antonio, TX

4.0

8.4

93

63

$394,830

$184,231

$76,000

$36,300

Orlando, FL

5.4

10.8

87

43

$350,919

$177,219

$70,000

$35,000

Cincinnati, OH

3.3

8.5

96

61

$443,360

$171,656

$87,000

$33,600

Cleveland, OH

3.1

8.0

96

66

$403,868

$164,204

$81,300

$32,000

Kansas City, MO

3.4

8.2

96

65

$443,150

$187,805

$87,000

$36,650

Las Vegas, NV

5.5

11.4

88

38

$372,010

$182,161

$74,000

$35,800

Columbus, OH

3.6

8.3

95

62

$440,449

$192,054

$85,000

$37,440

Indianapolis, IN

3.1

7.5

96

71

$425,609

$176,828

$83,800

$35,000

San Jose, CA

14.0

30.7

22

1

$693,211

$369,555

$ 136,200

$62,200

Austin, TX

5.1

11.1

87

42

$497,165

$233,188

$99,000

$45,600

[Souce: Zillow®]

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

How to Sign Up for Your Free CAR Member Continuing Education with OnlineEd

How to redeem your California Association of REALTORS® free continuing education in five easy steps!

By Jeff Sorg, OnlineEd Blog

(February 12, 2018)

cropped-Logo_O_512_512.jpg(OnlineEd) – California Association of REALTORS® ( C.A.R.) members in good standing may be eligible for a free 45-hour continuing education package delivered online by arrangement with OnlineEd®, a real estate industry premiere pre-license, continuing education, and professional development course provider offering online continuing education to the real estate industry since 1998. To redeem their member benefit, members will first need to log into their C.A.R. account to verify their membership and then follow the links to enroll in the free courses or simply follow this step-by-step guide: How to Sign up For Free CE in 5 easy steps

The California Bureau of Real Estate requires licensees to take 45 hours of continuing education every four years.  The offered C.A.R. member benefit includes course packages for broker and salesperson first and subsequent renewals.

Non-Members who would like to join C.A.R. should visit their website at www.CAR.org. Members who need assistance claiming their education benefit should also visit www.CAR.org and then click the link, Your C.A.R.

Sign up for your FREE CE here: How to Sign up For Free CE in 5 easy steps

OnlineEd is California Bureau of Real Estate Course Sp0nsor Number 4056

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Housing Sentiment at New Survey High

Share of consumers say it’s a good time to sell – buyer sentiment weakens

By Jeff Sorg, OnlineEd Blog

(January 9, 2018)

canstockphoto367977sold(WASHINGTON, DC) Fannie Mae – The Fannie Mae Home Purchase Sentiment Index® (HPSI) rose 3.7 points in January to 89.5, reversing the decrease seen last month and reaching a new all-time survey high. The increase can be attributed to increases in five of the six HPSI components. The net share of respondents who said now is a good time to buy a home increased 3 percentage points compared to December. Additionally, the net share who reported that now is a good time to sell a home increased 4 percentage points and is now up 23 percentage points year over year. The net share who said home prices will go up in the next 12 months increased 8 percentage points in January, while Americans also expressed a greater sense of job security, with the net share who say they are not concerned about losing their job increasing 5 percentage points. Finally, the net share of consumers who said mortgage rates will go down over the next 12 months increased 2 percentage points in January, while the net share reporting that their income is significantly higher than it was 12 months ago remained flat.

“HPSI rebounded from last month’s dip to a new survey high in January, in large part due to the spike in consumers’ net expectations that home prices will increase over the next year,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Results may continue to fluctuate over the coming months as consumers sort out the implications of the newly passed tax legislation on their household finances. Over the past year, continued home price growth has helped spur a sizable increase in the net share of consumers who say it’s a good time to sell a home but also a modest weakening in the net share who say it is a good time to buy. At the start of 2018, it is still too early to determine the overall effect of the new tax legislation on housing, and we will need to see whether positive impacts on both housing demand and supply materialize in the coming months.”

HOME PURCHASE SENTIMENT INDEX – COMPONENT HIGHLIGHTS

Fannie Mae’s 2017 Home Purchase Sentiment Index (HPSI) increased in January by 3.7 points to 89.5. The HPSI is up 6.8 points compared with the same time last year.

  • The net share of Americans who say it is a good time to buy a home rose 3 percentage points to 27%, reversing some of last month’s decline.
  • The net share of those who say it is a good time to sell rose 4 percentage points to 38%. The share who said it is a good time to sell reached a new survey high of 65%.
  • The net share of Americans who say home prices will go up rose 8 percentage points to 52% in January, reaching a new survey high. The percentage who said home prices will go up reached a new survey high of 58%.
  • The net share of those who say mortgage rates will go down over the next 12 months rose 2 percentage points to -50%.
  • The net share of Americans who say they are not concerned about losing their job rose by 5 percentage points to 73%.
  • The net share of Americans who say their household income is significantly higher than it was 12 months ago remained at 16% from last month.

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

HUD Announces $1.5 Billion to Puerto Rico for Hurricane Relief

Disaster recovery funds to help repair damaged housing and businesses

By Jeff Sorg, OnlineEd Blog

(February 2, 2018)

Washington, D.C. (HUD) – The U.S. Department of Housing and Urban Development (HUD) announced that it has granted more than $1.5 billion to help Puerto Rico to recover from Hurricanes Irma and Maria. HUD’s Deputy Secretary Pamela Hughes Patenaude announced the disaster recovery grants with Governor Ricardo Rosselló during her third visit to the island since Hurricanes Irma and Maria. The funds are provided through HUD’s Community Development Block Grant – Disaster Recovery (CDBG-DR) Program and will support long-term recovery of seriously damaged housing and local businesses in Puerto Rico.

“On behalf of the many thousands of survivors here in Puerto Rico, I want to express our appreciation to the Administration and HUD for recognizing the tremendous needs that remain in so many of our neighborhoods. This grant will make a huge difference in repairing damaged homes and businesses and facilitating the social and economic recovery here in the island,” said Governor Rosselló

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Categories: Mortgage, Real Estate Tags:

National Association of Realtors® Announces Restructuring, Senior Management Team

NAR implements new internal organizational structure and changes to senior management to effectively and efficiently serve its members.

By Jeff Sorg, OnlineEd Blog

(January 19, 2018)

(CHICAGO) NAR – The National Association of Realtors® has announced a new internal organizational structure and changes to its senior management team to more effectively and efficiently serve its 1.3 million Realtor® members.

“This reorganization reflects the promise I made when I was named CEO last August to create better efficiencies in engaging with and serving the association’s members,” said NAR CEO Bob Goldberg. “This restructuring to the internal organization is the most sweeping change in the association’s history, and I’m confident it will drive greater innovation, put more focus on member engagement and satisfaction, achieve a more holistic communications and marketing strategy, and improve the association’s nimbleness and decision-making.”

The new structure, comprised of 10 newly reorganized groups across NAR’s two offices in Chicago and Washington, D.C., results from the merger of several teams as well as the expansion and creation of several groups aimed to enhance services to and engagement with members. NAR consulted outside experts to conduct the organizational design study of its internal structure, processes and staff, and the newly reorganized structure and teams are effective immediately.

“Redefining the staffing structure is an important step toward making sure our members continue to come first,” said NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty. “I believe this new NAR will help bring us greater success in achieving the association’s strategic priorities in 2018 and beyond.”

NAR Organizational Changes and Senior Management Team

  • NAR’s Government Affairs and Community and Political Affairs divisions are merged into a new Political Advocacy group, led by newly promoted Chief Advocacy Officer and Senior Vice President Bill Malkasian, who will bring greater synergy to the association’s federal, state and local advocacy efforts.
  • A new Member Experience group will focus on ensuring Realtor® associations and members are highly engaged and satisfied with the association and its many services and offerings. NAR General Counsel and Senior Vice President Katherine Johnson takes on an expanded role overseeing all functions related to Legal, Information Services, Association Leadership Development, and Association and Multiple Listing Service Governance.
  • Communications, Marketing, and Meetings/Events are merged into one group, Marketing, Communications and Events, led by Senior Vice President Matt Lombardi. This group will bring significant enhancements to the way NAR communicates with members, ensuring consistency, continuity, rapid response and accuracy in branding, design and messaging.
  • A new Strategic Business Innovation & Technology group, led by recently promoted Senior Vice President Mark Birschbach, will drive industry innovation and bring benefits to members through strategic relationships with a broad range of business and technology players. Birschbach will oversee NAR’s Realtor Benefits® Program, Center for Realtor® Technology, Second Century Ventures, REach accelerator, top-level domains, and the relationship with Move, Inc., operator of realtor.com®.
  • Commercial and Global services continue under the leadership of Senior Vice President Janet Branton and will continue to focus on delivering service and value to members working in the global and commercial arenas and creating and building partnerships with real estate professionals and organizations around the world.
  • A newly formed Member Development group, led by newly named Senior Vice President Marc Gould, will drive an integrated education strategy for Realtors®. Gould will continue as dean of student services for Realtor® University, oversee NAR’s Center for Realtor® Development, Leadership Academy and the Commitment to Excellence and member financial wellness programs currently in development.
  • The Marketing Research and Predictive Analytics teams will be merged into NAR’s Research group to centralize research and data collection and analysis and will be led by Chief Economist and Senior Vice President Lawrence Yun.
  • Human Resources and employee engagement remains under the oversight of Senior Vice President Donna Gland.
  • NAR’s enterprise technology infrastructure, ecommerce and staff facing Information Technology services, security and support remain under the leadership of Chief Technology Officer and Senior Vice President Mark Lesswing. The group will also represent NAR on several technical industry standards organizations.
  • The association’s Finance group, overseeing budgets, financial analysis and real estate management will continue to be led by Chief Financial Officer and Senior Vice President John Pierpoint.
  • A new Leadership Resources team will also be led by Director Erin Campo, who reports directly to the CEO and oversees the operations of NAR’s elected leadership, including coordinating their meetings, travel, outreach activities and initiatives to achieve their visions and goals.

The National Association of Realtors® , “The Voice for Real Estate,” is America’s largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.

[Source: NAR press release]

 

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 Realtor® is a Trademark of the National Association of REALTORS.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Categories: Mortgage, Real Estate

Oregon House Bill 2737 – The “Tiny House Bill”

Micro-houses have difficulty meeting residential building codes but this bill aims to solve this problem

By Jeff Sorg, OnlineEd Blog

(January 19, 2018)

(PORTLAND, OR – OnlineEd) 

Video transcript:

Perhaps one of the more interesting bills submitted and passed by the Oregon Legislature in its 2017 session is House Bill 2737, known as the Tiny House Bill.

The demand for tiny houses or micro-houses is driven by a number of factors, including the cost of building materials, efforts to reduce the use of energy and natural resources, housing density goals and homelessness. The micro-houses have difficulty meeting residential building codes as these codes were developed for traditional housing forms. The International Code Council, or ICC, has approved new micro-housing standards for inclusion in the 2018 ICC code update. The Building Codes Division of the Department of Consumer and Business Services typically has a lag of one-to-three years before adjusting its codes to reflect ICC changes.

ICC code changes are not necessarily adopted automatically into the Oregon building codes, so what House Bill 2737 does is to require the Director of the Department of Consumer and Business Services to adopt the amendments to the specialty building codes to establish construction standards for homes that are 600 square feet or less. The code addresses such issues as ceiling height, lofts, ladders, and egress.

The codes relating to micro-houses are effective as of January 1, 2018. Click here to sign up for your free 3-hour required Law and Rule Required Course, LARRC.

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Refinances Rise to 40% of Total Loans

Closing rates increased across the board with closing rates on all loans increasing from 70.9 percent to 71.2 percent

By Jeff Sorg, OnlineEd Blog

(January 18, 2018)

canstockphoto10268206housepriceincrease(PLEASANTON, Calif.) Ellie Mae – The percentage of refinances rose to 40 percent of all closed loans, up 1 percent from the month prior according to the December Origination Insight Report from Ellie Mae®, the leading cloud-based platform provider for the mortgage finance industry. The percentage of FHA refinances increased to 25 percent of closed loans in the month, up 1 percentage point, and the percentage of conventional refinances increased to 47 percent of closed loans in December, up from 45 percent the month prior.

In December, closing rates increased across the board with closing rates on all loans increasing from 70.9 percent to 71.2 percent, closing rates on refinances increasing from 65.1 percent to 65.6 percent, and closing rates on purchases increasing from 75.5 percent to 76.1 percent. Closing rates also increased across FHA, conventional and VA loans for both purchases and refinances.

“As we closed out 2017 we saw an increase in the percentage of refinances due to seasonality as fewer purchases take place in the fourth quarter, and likely homebuyers were taking advantage of the mortgage deductibility limit before it decreased to $750,000 on December 15th,” said Jonathan Corr, president and CEO of Ellie Mae. “We probably can also attribute some of the increase in closing rates to last-minute efforts by borrowers to close loans before the tax changes took effect.”

Other statistics of note in December included:

  • The percentage breakdown of all closed loans remained steady with conventional loans at 66 percent, FHA loans at 20 percent and VA loans at 10 percent.
  • Closing time for all loans increased slightly to 44 days, up 1 day from the month prior.
  • 30-year interest rates increased to 4.280 from 4.240 the month prior.
  • The percentage of ARMs held steady at 5.6 percent.

The Origination Insight Report mines data from a robust sampling of approximately 80 percent of all mortgage applications that were initiated on the Encompass® all-in-one mortgage management solution. Ellie Mae believes the Origination Insight Report is a strong proxy of the underwriting standards employed by lenders across the country.

In addition to the Origination Insight Report, Ellie Mae also distributes data from its monthly Ellie Mae Millennial Tracker on the first Wednesday of each month. The Ellie Mae Millennial Tracker focuses on mortgage applications submitted by borrowers born between the years 1980 and 1999.

MONTHLY ORIGINATION OVERVIEW FOR DECEMBER 2017

December
2017*
November
2017*
6 Months Ago
(Jun 2017)*
1 Year Ago
(Dec. 2016)*
Closed Loans
Purpose
Refinance 40% 39% 32% 46%
Purchase 60% 61% 68% 54%
Type
FHA 20% 20% 22% 20%
Conventional 66% 66% 64% 66%
VA 10% 10% 10% 9%
Days to Close
All 44 43 43 50
Refinance 41 40 41 52
Purchase 46 45 43 48
Percentage of ARM and Fixed Loan Volume
ARM % 5.6% 5.6% 5.9% 4.6%
30-Year Rate
Average 4.280% 4.240% 4.270% 4.050%

*All references to months should be read as month ended.

PROFILES OF CLOSED AND DENIED LOANS FOR DECEMBER 2017
Closed First-Lien Loans (All Types)
FICO Score (FICO) 722
Loan-to-Value (LTV) 79
Debt-to-Income (DTI) 25/39

More information and analysis of closed and denied loans by loan purpose and investor are available in the full report at http://www.elliemae.com/about-us/news-reports/ellie-mae-reports/.

To get a meaningful view of lender pull-through, Ellie Mae reviewed a sampling of loan applications initiated 90 days prior—or the September 2017 applications—to calculate an overall closing rate of 71.2 percent in December 2017 (see full report).

ABOUT THE ELLIE MAE ORIGINATION INSIGHT REPORT

The Origination Insight Report focuses on loans that closed in a specific month and compares their characteristics to similar loans that closed three and six months earlier. The closing rate is calculated on a 90-day cycle rather than on a monthly basis because most loan applications typically take one-and-a-half to two months from application to closing. Loans that do not close could still be active applications or applications withdrawn by consumers or denied for incompleteness or non-qualification.

The Origination Insight Report details aggregated anonymized data pulled from Ellie Mae’s Encompass origination platform.

[Source: Ellie Mae press release]

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Oregon Real Estate Agency Raises Licensing Fees

Oregon license renewal fees increased for 2018

By Jeff Sorg, OnlineEd Blog

(January 17, 2018)

(Portland, Ore – OnlineEd®)

Activity Old Fee New Fee
Apply for a new real estate license $230 $300
Renew an active real estate license $230 $300
Late renewal of an active real estate license $260 ($230 + $30 late fee) $450 ($300 + $150 late fee)
Renew an inactive real estate license $110 $150
Reactivate an inactive license $75 $150
Issuance of a temporary license $40 $150
Extension of a temporary license $40 $150
Licensee name changes $10 $10
Transfer of licenses between registered businesses names $10 $10
Initial registration of a business name $230 $300
Renewal of a registered business name N/A $50
Change of a registered business name N/A $300
Registration of a branch office $10 $50

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark