Effective Immediately: Discriminatory Speech and Conduct Outside of REALTORS® Practice is Prohibited

The NATIONAL ASSOCIATION OF REALTORS® Board of Directors approved a change today expanding the Code of Ethics’ applicability to discriminatory speech and conduct outside of members’ real estate practices.

OnlineEd Blog

(November 13, 2020)

 

Salem, Oregon November 13, 2020 – NAR’s Board of Directors today strengthened REALTORS®’ commitment to upholding fair housing ideals, approving a series of recommendations from NAR’s Professional Standards Committee that extend the application of Article 10 of the Code of Ethics to discriminatory speech and conduct outside of members’ real estate practices.

Article 10 prohibits REALTORS® from discriminating on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity in the provision of professional services and in employment practices. The Board approved a new Standard of Practice under the Article, 10-5, that states, “REALTORS® must not use harassing speech, hate speech, epithets, or slurs” against members of those protected classes.

The Board also approved a change to professional standards policy, expanding the Code of Ethics’ applicability to all of a REALTOR®’s activities, and added guidance to the Code of Ethics and Arbitration Manual to help professional standards hearing panels apply the new standard.

Finally, Directors approved a revision to the NAR Bylaws, expanding the definition of “public trust” to include all discrimination against the protected classes under Article 10 along with all fraud. Associations are required to share with the state real estate licensing authority final ethics decisions holding REALTORS® in violation of the Code of Ethics in instances involving real estate-related activities and transactions where there is reason to believe the public trust may have been violated.

The Board made these changes effective immediately, though the changes cannot be applied to speech or conduct that occurred before the effective date. NAR has produced training and resource materials to assist leaders with understanding and implementing the changes and will be rolling those out in the coming weeks.

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

OnlineEd blog postings are the opinion of the author. Nothing posted in this or any other article is intended as legal or any other type of professional advice. Be sure to consult an appropriate professional when professional advice is needed. Excerpts from articles not originating with Jeff Sorg/OnlineEd are reprinted with permission; remain the sole property of the author; no permission to reprint articles or portions thereof not arising from this blog but reprinted here is given or implied. Information in this posting is deemed correct as of the date of publication. Still, it is not guaranteed by the author to be accurate, or information may have been obtained from third-party sources and cannot be further verified for correctness. 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.

How to Find Out if Someone Holds an Oregon Real Estate License

How the public can easily verify an Oregon real estate license

By Jeff Sorg, OnlineEd Blog

(October 1, 2020)

 OnlineEd – The Oregon Real Estate Agency Index Page provides many features for the public and its licensees. One feature the public takes advantage of from this page is being able to confirm that an individual who represents theirself to be a licensee is, in fact, a licensee. Finding out the license status of an individual takes just a few clicks using the Agency’s handy “licensee lookup” feature, and it’s pretty intuitive. For example, a search can be performed by first name, last name, business name, license number, address, or any combination of these fields.

Buyers and sellers should make sure that someone holding theirself out to be a real estate broker is an active licensed before hiring the person. Another reason to search for the legitimacy of a license is to prevent being scammed. Currently, for example, scammers are contacting timeshare owners, giving the names of legitimate Oregon real estate licensees, representing they have a buyer for their timeshare, asking the owner to wire transfer money to pay a “transfer fee” to effect the transfer of the timeshares. Finally, the scammers will ask the seller to sign over a deed.

Clearly, the Agency provides this service for many reasons. It only takes a few moments using the Agency’s tool to find out if someone is legitimate or to find the actual contact information to make verification. A few minutes could save thousands of dollars and a whole lot of trouble!

 

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

OnlineEd blog postings are the opinion of the author. Nothing posted in this or any other article is intended as legal or any other type of professional advice. Be sure to consult an appropriate professional when professional advice is needed. Excerpts from articles not originating with Jeff Sorg/OnlineEd are reprinted with permission; remain the sole property of the author; no permission to reprint articles or portions thereof not arising from this blog but reprinted here is given or implied. Information in this posting is deemed correct as of the date of publication. Still, it is not guaranteed by the author to be accurate, or information may have been obtained from third-party sources and cannot be further verified for correctness. 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.

Escrow Explained

Escrow is a legal arrangement for the delivery of documents or funds to a neutral third party to be held until a particular event happens

By Jeff Sorg, OnlineEd Blog

(September 17, 2020)

Escrow is very important to real estate, but it is not unique to real estate. Escrow is used in many non-real estate transactions, ranging from holding funds in an account pending the release or delivery of goods in daily commerce to holding funds or documents pending the settlement of a legal proceeding. So what is escrow? Escrow is a legal arrangement for delivering documents or funds to a neutral third party, to be held until a particular event happens or condition is performed. Once the event or condition happens, the subsequent release of those documents or funds to another party will occur.

In the real estate business, escrow, in its most basic form, is delivering the deed by the property seller to a neutral third party who will hold it until the buyer deposits the full amount of the purchase price. When escrow has collected the deed and funds, and the closing date arrives, escrow will deliver the deed to the buyer, and the sale proceeds to the seller.

Escrow is depositing funds, documents, and other instruments by a buyer or seller, or a borrower or lender, with an impartial third party for delivery on completion of the terms of the escrow instructions. The escrow agent acts only on written instructions from the transaction principals, and also serves as a custodian for the funds and documents. Escrow is also a kind of clearinghouse to collect and make payments of all demands, and an agency to perform the clerical details to settle the accounts between the parties.

Because a party completes the responsibility for handling the funds and documents with no interest in either, escrow also ensures property ownership transfers happen fairly, impartially, and with minimum risk to either the buyer or seller. Escrow should be used whenever a third party is needed to ensure impartiality or to hold funds and documents safely until all the contract requirements of each party have been fulfilled or agreed to.

The key to the escrow process is neutrality. The escrow company should be agreed upon between the clients. Still, in reality, the real estate agents like to entrust their transactions to escrow officers with whom they have become familiar and trust to do an efficient job. A trusted escrow officer is one that can take a tremendous burden off the busy real estate agent. Real estate agents also feel obligated to give business to the escrow company that provides them with property research information and other useful information and tools. Nevertheless, licensees should remember that in the relationship between the licensee and the escrow officer, the escrow officer must always be independent and neutral.

The Real Estate Settlement Procedures Act (RESPA) of 1974 is a federal law that affects how closing is handled in most residential transactions. The main goals of the act are to provide borrowers with information about closing costs, to allow consumers to become better shoppers of settlement services, and to eliminate kickbacks and referral fees that increase the cost of settlement for the consumer.

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

OnlineEd blog postings are the opinion of the author. Nothing posted in this or any other article is intended as legal or any other type of professional advice. Be sure to consult an appropriate professional when professional advice is needed. Excerpts from articles not originating with Jeff Sorg/OnlineEd are reprinted with permission; remain the sole property of the author; no permission to reprint articles or portions thereof not arising from this blog but reprinted here is given or implied. Information in this posting is deemed correct as of the date of publication. Still, it is not guaranteed by the author to be accurate, or information may have been obtained from third-party sources and cannot be further verified for correctness. 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.

CDC Halts Evictions Nationwide – Renters Must Claim Protection

Centers for Disease Control Moratorium Stops Residential Evictions to Help Prevent Spread of COVID-19

By Jeff Sorg, OnlineEd Blog

(September 2, 2020)

Worried couple facing eviction

The Centers for Disease Control and Prevention (CDC), located within the Department of Health and Human Services (HHS), announced the issuance of an Order under Section 361 of the Public Health Service Act to temporarily halt residential evictions to prevent the further spread of COVID-19. The moratorium becomes effective on its publication date in the Federal Register of September 4, 2020, and remains in effect through December 31, 2020.

Under the order, a landlord, an owner of a residential property, or another person with a legal right to pursue eviction or possessory action, shall not evict any covered person from any residential property in any jurisdiction to which the moratorium order applies during its effective period. The order does not apply in any State, local, territorial, or tribal area with a moratorium on residential evictions providing the same or greater level of public-health protection than the CDC order. Nor does it preclude State, local, territorial, and tribal authorities from imposing additional requirements that provide greater public-health protection and are more restrictive requirements. The order is a temporary eviction moratorium to prevent the further spread of COVID-19 and does not relieve any individual of any obligation to pay rent, make a housing payment, or comply with any other obligation under a tenancy, lease, or similar contract. Nothing in the order precludes charging or collecting fees, penalties, or interest as a result of the failure to pay rent or other housing payments on a timely basis, under the terms of any applicable contract.

For renters to qualify for the CDC’s protections, they must make less than $99,000 a year, or $198,000 if filing taxes jointly, be unable to pay rent because of loss of income or extraordinary medical expenses, if they would become homeless or be required to live in crowded conditions, and have to declare that they have no other housing options available if evicted. This CDC ban will apply only if there isn’t a more protective state moratorium already in place.  According to the CDC, “In the absence of State and local protections, as many as 30–40 million people in America could be at risk of eviction. A wave of evictions on that scale would be unprecedented in modern times. A large portion of those who are evicted may move into close quarters in shared housing or become homeless, thus contributing to the spread of COVID-19.”

Tenants, under penalty of purgery, must swear to the following:

  • They have used best efforts to obtain all available government assistance for rent or housing;
  • They either expect to earn no more than $99,000 in annual income for Calendar Year 2020 (or no more than $198,000 if filing a joint tax return), was not required to report any income in 2019 to the U.S. Internal Revenue Service, or received an Economic Impact Payment (stimulus check) under Section 2201 of the CARES Act;
  • They are unable to pay my full rent or make a full housing payment due to substantial loss of household income, loss of compensable hours of work or wages, lay-offs, or extraordinary out-of-pocket medical expenses;
  • They are using best efforts to make timely partial payments that are as close to the full payment as the individual’s circumstances may permit, taking into account other nondiscretionary expenses;
  • If evicted that they would likely become homeless, need to move into a homeless shelter, or need to move into a new residence shared by other people who live in close quarters because they have no other available housing options.
  • They understand that they must still pay rent or make a housing payment, and comply with other obligations that they may have under their tenancy, lease agreement, or similar contract. And further understand that fees, penalties, or interest for not paying rent or making a housing payment on time as required by their tenancy, lease agreement, or similar contract may still be charged or collected.
  • They further understand that at the end of this temporary halt on evictions on December 31, 2020, their housing provider may require payment in full for all payments not made before and during the temporary halt, and failure to pay may make them subject to eviction under State and local laws.

 

Any person who violates the CDC order may be subject to a fine of no more than $100,000 if the violation does not result in a death or one year in jail, or both, or a fine of no more than $250,000 if the violation results in a death or one year in jail, or both, or as otherwise provided by law. An organization violating the order may be subject to a fine of no more than $200,000 per event if the violation does not result in a death or $500,000 per occurrence if the violation results in a death or as otherwise provided by law.

[Image Credit: (c) CanStockPhoto] [Source: Department of Health and Human Services, Centers for Disease Control and Prevention, Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19]

 

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OnlineEd blog postings are the 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.

Excerpts from articles not originating with Jeff Sorg/OnlineEd are reprinted with permission; remain the sole property of the author; no permission to reprint is given or implied.

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

Information in this posting is deemed correct as of the date of publication, but is not guaranteed by the author or 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: , , ,

Evaluating Mortgage Loan Programs

 The residential lending process can be confusing for consumers and beginning real estate agents

By Jeff Sorg, OnlineEd Blog

(August 26, 2020)

 OnlineEd – The residential lending process can be confusing for consumers and beginning real estate agents. While most real estate agents will send their clients to a mortgage broker for the qualifying process, it is still important for the new agent to gain an understanding of some key loan terminology to be better able to their help clients understand which loan program might be best for their particular financial situation, and which offers the best savings over the loan term.

These are some key features to understand when your client is evaluating different loan programs:

    1. Loan origination fees – These are fees charged by a lender to cover the administrative costs of processing a loan. The origination fee is expressed in terms of points, with one point being 1% of the loan amount.
    2. Discount points – Discount points lower the monthly loan payment by collecting a lump sum payment of interest upfront at transaction closing. This lump sum payment will fund the loan at a lower interest rate for the entire term of the loan. The number of discount points charged by the lender will correspond with the market interest rate as compared with the consumer’s requested interest rate. The lower the underlying interest rate in contrast to the market rate, the more discount points will be charged. One discount point is 1% of the loan amount.
    3. Buydowns – A buydown is also interest paid to the lender upfront in a lump sum. In exchange for this payment, the lender agrees to lower the interest rate, which, in turn, reduces the monthly payment for a specified period. Buydowns serve the same function as discount points. However, they do not always work in the same way. For a conventional loan, it does not matter who pays the buydown. Additionally, buydowns can be used with both fixed-rate and adjustable-rate loans, and they can be either temporary or permanent. Temporary buydowns are the most common and apply for the first year or first few years of the loan. Buydowns can be paid by the buyer or the seller and are commonly used when the borrower cannot qualify because the payments are too high. The temporary buydown allows the buyer to be eligible for the loan on the initial lower payment with the buydown applicable for the first one, two, or three years. A permanent buydown allows a borrower to finance up to 3 discount points into the loan amount.
  1. Truth in Lending (Regulation Z) – The purpose of the Truth in Lending Act, implemented by Regulation Z, is to compel lenders to disclose loan terms to prospective borrowers for comparison purposes. All residential loans, except seller financing, are covered under Truth in Lending. All loan fees, loan terms, and the APR (Annual Percentage Rate) must be disclosed. The APR is the actual annual percentage rate of interest being charged and is composed of the annual interest rate plus other loan fees such as origination fees, discount points, and buydowns. Under Regulation Z, a consumer has a three-day right to rescind (cancel) a credit transaction, but this right to cancel does not apply to residential first mortgages.
  2. Real Estate Settlement Procedures Act (RESPA) – RESPA applies to all federally related loans secured with a mortgage on one-to-four residential properties. RESPA requires the following:Disclosures are required at various stages in the loan and settlement process:
    1. Disclosures at loan application – Special Information Booklet, Loan Estimate, HELOC brochure, and servicing disclosure statement.
    2. Disclosures before loan settlement – AfBA disclosure and Closing Disclosure. AfBA stands for Affiliated Business Disclosure Arrangement.
    3. Disclosures at loan settlement – Initial escrow statement.

    RESPA prohibits anyone from giving or accepting a fee, kickback, or anything of value in exchange for referrals of settlement service business involving a federally related mortgage loan. Also, RESPA prohibits fee splitting and receiving unearned fees for services not performed. However, nothing in the law prohibits real estate agents from identifying and recommending service providers who will perform quality services for the client.

  3. Applying and Qualifying for a Residential Loan – To obtain a residential mortgage loan, a buyer must complete a loan application and submit it and any required supporting documentation to their mortgage broker. The completed application and supporting documentation will then be forwarded to loan underwriting. Underwriting is the qualifying process in which the loan documentation of the borrower is evaluated for approval or disapproval. The type of loan product selected and whether the product will be a conventional or government product will be determined by the borrower’s profile as it applies to the lender’s various qualifying ratios. Qualifying ratios are based on the type of loan program and its underwriting guidelines. Affordable housing programs and governmental programs, such as FHA and VA, all have unique qualifying ratios that apply.
  4. Residential Loan Types – Residential loans are either conventional loans or non-conventional loans. The term conventional is used to identify those loans that are not insured, guaranteed, or initiated by any governmental body. The majority of non-conventional loans are government loan products. Additionally, conventional loans may be classified as either conforming or non-conforming. Loan products that fall within the established maximum loan amount are known as conforming loans. Non-conforming loans are those that exceed the maximum loan amount.
  5. Conventional loan products – Following are the most common conventional loan products available in the marketplace:
    1. Fixed-rate loans – The fixed-rate mortgage remains the most popular conventional loan. The most common period for the loan to amortize (i.e., retire the debt in equal installment) is 30 years. However, for those borrowers wishing to retire the debt in less time, shorter fixed terms are available. A typical shorter loan amortization period is the 15-year loan. The fixed-rate loan usually calls for one payment each month.
    2. Adjustable-rate loans – When the interest rate for the loan is not fixed, it is an adjustable-rate mortgage (ARM). Interest rates for ARMs consist of an index rate plus a margin. Usually, this type of loan is used in cases where a borrower needs or wants a lower interest rate in the initial years of the loan. The index rate is the interest rate that reflects general market conditions. The margin The index changes based on the market. Changes in the index, along with the loan’s margin, will determine the changes to the interest rate for an adjustable-rate loan. The margin is the number of percentage points added to the index by the mortgage lender to set your interest rate on an adjustable-rate mortgage (ARM) after the initial rate period ends. Index + Margin = Loan Interest Rate.
  6. Government loan programs – The following are the most prevalent government loan programs:
    1. FHA loans – Among government loan agencies, the largest is the Federal Housing Administration (FHA). Today, FHA insures loans initiated by participating lenders. In essence, it places the credit of the U.S. Government behind the borrower by insuring the loan against default. When a default happens, the lender can recover losses from the FHA insurance pool. FHA mortgage insurance is called Mortgage Insurance Premium (MIP) to set it apart from insurance provided by Private Mortgage Insurance (PMI). MIP is paid by all FHA borrowers and is calculated to be sufficient to cover any loss.FHA loans are easier to qualify for than are conventional loans. An FHA loan will have a lower interest rate than a conventional loan, mainly if a buyer is unable to come up with a sizeable down payment and is obtaining both a first and second mortgage to finance a home. The cash investment of the borrower is minimal, thereby opening homeownership to persons who could not otherwise have purchased a home. Also, the qualifying ratios are more favorable to the borrower. MIP is required on all FHA loans regardless of the size of the down payment.
    2. VA loans – A VA loan offers military veterans many advantages over conventional financing. VA loan eligibility is based on the length of continuous active service. This minimum service ranges from 90 days to 24 months, depending on when the veteran served. Peacetime service requires longer times. National Guard and Reservists also have eligibility based on long-term service. Military personnel discharged dishonorably are not eligible. Spouses of veterans killed or missing in action or held as prisoners of war may also be eligible, so long as they haven’t remarried.The Department of Veterans Affairs issues a Certificate of Eligibility (COE). This certificate goes to the lender who will process the loan application and forward it to the VA. A VA appraiser must appraise the property, and the value is outlined in a document known as a Certificate of Reasonable Value (CRV). Once the lender approves the veteran borrower, the U.S. Government guarantees the loan. A VA loan does not require a down payment. The loan amount can be the sales price or appraised value, whichever is less. There is no maximum loan amount, nor are there income restrictions. VA underwriting standards are less stringent than conventional or FHA standards.

For more information on loan programs, it is essential to align yourself with a knowledgable mortgage broker who won’t hesitate to work with you and your clients. Mortgage brokers are usually open to establishing relationships with new agents, so it should be pretty easy to find one who is polite, professional, and works only in the best interest of your clients. If you can’t find one or two you are comfortable working with, just ask around your office for a few referrals.

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OnlineEd blog postings are the 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.

Excerpts from articles not originating with Jeff Sorg/OnlineEd are reprinted with permission; remain the sole property of the author; no permission to reprint is given or implied.

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

Information in this posting is deemed correct as of the date of publication, but is not guaranteed by the author or 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

Top Relocation States During the Pandemic

Florida tops the list of buyer destinations during the pandemic

By Jeff Sorg, OnlineEd Blog

(August 19, 2020)

Stack of moving boxes on a hand truck      (OnlineEd)Hire a Helper, who has been helping people move for over 10 years, has released what they bill as “The Ultimate Collection of US Moving Statistics” on their web site https://www.hireahelper.com/.

The report is a comprehensive hub for every major relocation study in America and includes migration reports, van line reports, and government census data. The report has as its goal to combine, compare, and contrast data across every major moving report to explain where Americans are moving. These are some interesting facts you will find in their report:

  • 9.8% of Americans moved in 2019 – the lowest rate in 70+ years. This moving rate has been steadily declining since reaching a high of 20.2%, way back in 1985.
  • 35 fewer people moved in 2019. At roughly 31.4 million people, that’s 3% fewer than a year ago when 32.3 million Americans relocated, and 16% fewer than 5 years ago in 2015 when 36.3 million people moved.
  • 21.2% moved to a different county within the same state in 2019, the second-highest rate in 30 years.
  • 20% of Millennials moved in 2019, the highest % among all age groups; only 3.5% of people aged 65+ moved last year.
  • 20% of people renting a home moved in 2019; 5% of homeowners moved in 2019.
  • 85% of people moved at least once in the last 5 years; 75% moved once or twice in the previous 5 years; 6% moved once every year; 4% moves multiple times each year.
  • On average, Americans move 11 times in their lifetime.

States People Moved INTO the most 2019 (HireAHelper):

  1. Idaho
  2. New Mexico
  3. Maine
  4. Arizona
  5. South Dakota
  6. Iowa
  7. Mississippi
  8. Nevada
  9. North Carolina
  10. Vermont

Where Do Americans Who Leave Their State Go? (Source: US Census Bureau)

  1. Florida
  2. Texas
  3. California
  4. North Carolina
  5. Georgia
  6. Virginia
  7. New York
  8. Pennsylvania
  9. Washington
  10. Illinois

 

This comprehensive report is chock full of useful information, including % of people who moved by demographics, reasons for moving, highest traffic of inbound and outbound moves, state-by-state, and top city by net moves in each state to name a few. You can get your copy of the complete report at https://www.hireahelper.com/moving-statistics/.

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OnlineEd blog postings are the 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.

Excerpts from articles not originating with Jeff Sorg/OnlineEd are reprinted with permission; remain the sole property of the author; no permission to reprint is given or implied.

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

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

COVID-19 Mortgage Relief, Scams, Online Banking Tips, and Student Loan Relief

CFPB offers tips and videos to alert the public about how mortgage forbearance works and financial information for those impacted by the COVID-19 Pandemic 

By Jeff Sorg, OnlineEd Blog

(April 3, 2020)

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) has released a video on how struggling homeowners can obtain mortgage forbearance if their finances are impacted due to the COVID-19 pandemic, student loan relief, scams to watch out for, and online and mobile banking tips.

Below are the resources for consumers:

VIDEO: CARES Act Mortgage Forbearance: What You Need to Know

Guide to coronavirus mortgage relief options

What you need to know about student loans and the coronavirus pandemic

Beware of scams related to the coronavirus

Online and mobile banking tips for beginners

 

[Source: CFPB press release]

 

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OnlineEd blog postings are the 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.

Excerpts from articles not originating with Jeff Sorg/OnlineEd are reprinted with permission; remain the sole property of the author; no permission to reprint is given or implied.

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

Information in this posting is assumed correct when published but is not guaranteed if 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

Real Estate Pre-License Study Video: Understanding the Escrow Process

Questions and answers about a real estate escrow

By Jeff Sorg, OnlineEd Blog

(August 27, 2019)

(PORTLAND, Ore.) OnlineEd – What is escrow? Why is escrow important for real estate transactions? Who opens the escrow? When is escrow closed? Find out the answers to these and other questions by watching this informative study video designed to be used with our Real Estate Pre-License course.

 

Video (C) Copyright; OnlineEd 2019. All Rights Reserved.

No right to reproduce in whole or in part is given.

 

 

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OnlineEd blog postings are the 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.

Excerpts from articles not originating with Jeff Sorg/OnlineEd are reprinted with permission; remain the sole property of the author; no permission to reprint is given or implied.

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

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

FHA Issues Rule to Include Approval of Individual Units in Non-Approved Condo Projects

FHA responds to the market

By Jeff Sorg, OnlineEd Blog

(August 22, 2019)

To promote homeownership, especially among credit-worthy first-time buyers, the Federal Housing Administration (FHA) published its long-awaited final regulation, and policy implementation guidance, which establish a new condominium approval process. That provides for comprehensive revision to FHA condominium project approval policy. The new policy will allow specific individual condominium units to be eligible for FHA mortgage insurance even if the condominium project is not FHA approved. The polices become effective on October 15, 2019.

FHA’s new rule introduces a new single-unit approval process to make it easier for individual condominium units to be eligible for FHA-insured financing; extends the recertification requirement for approved condominium projects from two to three years; allows more mixed-use projects to be eligible for FHA insurance.

“Condominiums have increasingly become a source of affordable, sustainable homeownership for many families and it’s critical that FHA be there to help them,” said U.S. Housing and Urban Development Secretary Ben Carson. “Today, we take an important step to open more doors to homeownership for younger, first-time American buyers as well as seniors hoping to age-in-place.”

HUD Acting Deputy Secretary and FHA Commissioner Brian Montgomery added, “Today we are making certain FHA responds to what the market is telling us. This new rule allows FHA to meet its core mission to support eligible borrowers who are ready for homeownership and are most likely to enter the market with the purchase of a condominium.”

The vast majority (84 percent) of FHA-insured condo buyers have never owned a home before. While there are more than 150,000 condominium projects in the U.S., only 6.5 percent are approved to participate in FHA’s mortgage insurance programs.  As a result of FHA’s new policy, it is estimated that 20,000 to 60,000 condominium units could become eligible for FHA-insured financing annually.

Read FHA’s new condominium approval regulation.

 

 

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OnlineEd blog postings are the 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.

Excerpts from articles not originating with Jeff Sorg/OnlineEd are reprinted with permission; remain the sole property of the author; no permission to reprint is given or implied.

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

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

Home Value Appreciation Has Slowed Each Month This Year

Annual home value appreciation decreased for the seventh straight month in July

By Jeff Sorg, OnlineEd Blog

(August 16, 2019)

SEATTLE, Aug. 16, 2019 /PRNewswire/ — U.S. home value growth continues to slow, according to the July Zillow® Real Estate Market Reporti. The typical U.S. home is worth $229,000, up 5.2% from a year ago – this is the smallest annual appreciation since October 2015. Last year at this time, home values rose 7.7% year-over-year. Still, home values are up 0.3% month-over-month, an indication that values are stabilizing after a period of relatively extreme growth rather than headed for a sustained downturn.

Among the 50 largest U.S. markets, home values have grown the most in Salt Lake City (up 9.4% since July 2018), Indianapolis (up 8.1%) and Charlotte (up 7.3%), although growth is slowing in each of these metros. Only New Orleans, Birmingham and Oklahoma City saw home values appreciate at a greater rate than a year ago.

Home values have fallen year-over-year in California’s San Francisco Bay Area, home to the two most expensive markets in the country. The value of the typical home fell 10.5% in San Jose and 1.1% in San Francisco. A year ago, home values were growing 24% annually in San Jose, a 34.5 percentage point difference.

“As talk builds of a potential recession in the next year or two, housing remains fairly stalwart,” said Zillow Director of Economic Research Skylar Olsen. “The slowing appreciation is ultimately a good sign that the market is adjusting in response to the growing unaffordability of down payments, while low mortgage rates are keeping those with the required savings interested despite softer growth out the gate. The uptick in the rate of homes coming onto the market – a good and true increase in supply – should be a boon to those inventory-starved home buyers still searching near the close of home shopping season. While buyers are catching a break, renters have seen prices continue their steady upward climb, presenting yet another obstacle in the quest to save for that down payment.”

The median U.S. rent rose 1.9% year-over-year to $1,592ii. For the eighth consecutive month, rents rose the most in Phoenix (up 6.1% from a year ago), followed by Las Vegas (up 5.9%). Rents fell in only three of the 50 largest markets – Houston, Buffalo and Baltimore.

Inventory grew 1.3% annually, reversing four straight months of declines. There are 19,978 more homes for sale than this time last year. New listings drove the inventory growth in July, up 5.7% from a year ago.

Mortgage rates listed on Zillow fell lower in July. Rates ended the month at 3.72%, down 23 basis points from July 1. Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgages site and reflect the most recent changes in the market.

Metropolitan Area Zillow Home Value Index, July 2019 ZHVI Year-over-Year Change, July 2019 ZHVI Year-over-Year Change, July 2018 Zillow Rent Index, July 2019 ZRI Year-over-Year Change, July 2019 Inventory Year-over-Year Change, July 2019
United States $229,000 5.2% 7.7% $1,592 1.9% 1.3%
New York, NY $442,800 3.2% 5.5% $2,279 2.3% 4.8%
Los Angeles-Long Beach-Anaheim, CA $650,600 0.9% 6.3% $2,599 1.3% 11.3%
Chicago, IL $225,200 2.1% 5.3% $1,615 1.3% 6.9%
Dallas-Fort Worth, TX $243,500 5.1% 11.8% $1,439 1.5% 12.3%
Philadelphia, PA $233,300 2.1% 5.3% $1,497 2.5% -4.8%
Houston, TX $206,400 3.4% 6.1% $1,378 -0.5% 5.5%
Washington, DC $407,700 2.1% 3.8% $1,971 2.0% -8.8%
Miami-Fort Lauderdale, FL $284,300 3.2% 8.2% $1,851 2.2% 3.8%
Atlanta, GA $220,300 6.9% 11.8% $1,454 4.1% 8.3%
Boston, MA $463,300 1.9% 6.2% $2,416 2.2% 8.4%
San Francisco, CA $938,100 -1.1% 9.4% $3,166 1.2% 21.5%
Detroit, MI $162,900 4.6% 9.4% $1,211 2.3% 17.4%
Riverside, CA $371,500 3.3% 7.3% $1,907 4.3% -1.6%
Phoenix, AZ $267,500 4.5% 7.7% $1,401 6.1% -2.9%
Seattle, WA $489,500 0.5% 8.7% $2,036 2.4% 14.3%
Minneapolis-St Paul, MN $272,000 4.3% 6.6% $1,494 0.6% 4.9%
San Diego, CA $591,500 1.1% 6.1% $2,519 3.1% 6.0%
St. Louis, MO $167,700 3.5% 5.5% $1,009 1.3% -15.0%
Tampa, FL $216,400 5.0% 10.6% $1,392 3.7% 2.8%
Baltimore, MD $267,100 0.7% 4.9% $1,605 -0.1% -4.0%
Denver, CO $409,200 3.0% 6.7% $1,781 1.5% 26.9%
Pittsburgh, PA $144,700 2.5% 7.3% $1,102 1.8% -15.0%
Portland, OR $396,700 1.5% 5.3% $1,647 0.7% 3.1%
Charlotte, NC $210,600 7.3% 10.2% $1,322 3.5% 6.2%
Sacramento, CA $411,300 2.7% 5.4% $1,788 3.5% 0.8%
San Antonio, TX $195,600 5.0% 5.7% $1,215 0.3% 17.9%
Orlando, FL $240,000 5.1% 9.4% $1,414 3.5% 4.5%
Cincinnati, OH $170,400 5.4% 6.3% $1,145 3.2% -8.3%
Cleveland, OH $147,100 4.2% 6.6% $1,071 4.1% -1.3%
Kansas City, MO $191,900 4.7% 9.5% $1,121 1.0% N/A
Las Vegas, NV $279,100 5.1% 13.6% $1,329 5.9% 53.5%
Columbus, OH $193,800 6.5% 7.9% $1,183 0.6% -3.3%
Indianapolis, IN $167,300 8.1% 9.6% $1,100 1.0% N/A
San Jose, CA $1,144,800 -10.5% 24.0% $3,338 0.5% 32.6%
Austin, TX $312,300 4.7% 6.2% $1,586 2.1% -4.9%
Virginia Beach, VA $229,800 1.5% 2.8% $1,335 1.1% -9.6%
Nashville, TN $255,700 4.0% 9.8% $1,445 1.3% 14.6%
Providence, RI $295,100 3.4% 7.3% $1,427 3.2% -3.7%
Milwaukee, WI $232,500 4.5% 5.2% $1,094 2.5% 15.3%
Jacksonville, FL $214,400 5.5% 10.5% $1,348 3.9% -2.1%
Memphis, TN $141,000 5.1% 8.3% $1,047 4.2% -10.6%
Oklahoma City, OK $148,400 4.0% 2.9% $937 1.8% -11.5%
Louisville-Jefferson County, KY $164,400 5.5% 5.7% $1,087 1.4% -1.2%
Hartford, CT $229,100 0.2% 2.5% $1,334 1.1% -4.4%
Richmond, VA $232,000 4.0% 5.3% $1,323 1.3% N/A
New Orleans, LA $176,000 2.7% 0.0% $1,274 0.5% 0.4%
Buffalo, NY $161,400 4.4% 6.7% $1,015 -0.3% -1.2%
Raleigh, NC $269,100 5.2% 5.6% $1,286 1.0% 0.6%
Birmingham, AL $148,700 6.9% 5.5% $1,058 2.3% -5.9%
Salt Lake City, UT $373,200 9.4% 11.3% $1,494 1.7% 20.3%

 

[Source: Zillow press release]

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