Tag Archives: real estate

Salary Needed for a Median-Priced Home in 27 Metro Areas

salary bag(Jeff Sorg, OnlineEd) – In a recently released survey, HSH.com reports the various salaries needed to buy a home in 27 metro sites across the country. Here are some of the more interesting findings of the report:

  • A buyer needs to earn a salary of $47,253.07 to afford the median-priced home, Nationally. Yet if they put only 10 percent down instead of 20 percent, that salary increases to $54,341.84.
  • San Francisco remains singularly unaffordable for all but the highest earners. To afford the median-priced home in the San Francisco metro area you will have to earn an eye-popping $141,417 a year.
  • Los Angeles is more affordable than New York City, but only by $159.
  • Cleveland is the most affordable metro on our list.

Visit  HSN to view the complete report and to see how much salary you would need to earn in order to afford the principal, interest, taxes and insurance payments on a median-priced home in 27 metro areas.

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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.

  This article was published on May 28, 2015. All information contained in this posting is deemed correct and current as of this date, but is not guaranteed by the author and may have been obtained by 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.

First-time Buyers Fall to Lowest Level in Nearly Three Decades

(c) Can Stock Photo (Jeff Sorg, OnlineEd) – The share of first-time buyers fell to its lowest point in nearly three decades, according to an annual survey recently released by the National Association of Realtors® (NAR).

The long-term average in this survey, dating back to 1981, shows that four out of 10 purchases are from first-time home buyers. In this year’s survey, the share of first-time buyers dropped 5 percentage points from a year ago to 33 percent, representing the lowest share since 1987 (30 percent).

Lawrence Yun, NAR chief economist, says there are many obstacles young adults are enduring on their path to homeownership. “Rising rents and repaying student loan debt makes saving for a down payment more difficult, especially for young adults who’ve experienced limited job prospects and flat wage growth since entering the workforce,” he said. “Adding more bumps in the road, is that those finally in a position to buy have had to overcome low inventory levels in their price range, competition from investors, tight credit conditions and high mortgage insurance premiums.”

Yun adds, “Stronger job growth should eventually support higher wages, but nearly half (47 percent) of first-time buyers in this year’s survey (43 percent in 2013) said the mortgage application and approval process was much more or somewhat more difficult than expected. Less stringent credit standards and mortgage insurance premiums commensurate with current buyer risk profiles are needed to boost first-time buyer participation, especially with interest rates likely rising in upcoming years.”

The household composition of buyers responding to the survey was mostly unchanged from a year ago. Sixty-five percent of buyers were married couples, 16 percent single women, 9 percent single men and 8 percent unmarried couples.

The median age of first-time buyers was 31, unchanged from the last two years, and the median income was $68,300 ($67,400 in 2013). The typical first-time buyer purchased a 1,570 square-foot home costing $169,000, while the typical repeat buyer was 53 years old and earned $95,000. Repeat buyers purchased a median 2,030-square foot home costing $240,000.

When asked about the primary reason for purchasing, 53 percent of first-time buyers cited a desire to own a home of their own. For repeat buyers, 12 percent had a job-related move, 11 percent wanted a home in a better area, and another 10 percent said they wanted a larger home. Responses for other reasons were in the single digits.

According to the survey, 79 percent of recent buyers said their home is a good investment, and 40 percent believe it’s better than stocks.

Nearly nine out of 10 buyers (88 percent) financed their purchase. Younger buyers were more likely to finance (97 percent) compared to buyers aged 65 years and older (64 percent). The median down payment ranged from 6 percent for first-time buyers to 13 percent for repeat buyers. Among 23 percent of first-time buyers who said saving for a down payment was difficult, more than half (57 percent) said student loans delayed saving, up from 54 percent a year ago.

Eighty one percent of first-time buyers used a variety of outside resources for their loan down payment, in addition to tapping into their savings. Twenty-six percent received a gift from a friend or relative – most often their parents – and 6 percent received a loan from a relative or friend. Ten percent of buyers sold stocks or bonds and tapped into a 401(k) fund.

Ninety-three percent of entry-level buyers chose a fixed-rate mortgage, with 35 percent financing their purchase with a low-down payment Federal Housing Administration-backed mortgage (39 percent in 2013), and 9 percent using the Veterans Affairs loan program with no down payment requirements.

“FHA premiums are too high in relation to default rates and have likely dissuaded some prospective first-time buyers from entering the market,” says Yun. “To put it in perspective, 56 percent of first-time buyers used a FHA loan in 2010. The current high mortgage insurance added to their monthly payment is likely causing some young adults to forgo taking out a loan.”

Buyers used a variety of resources to search for a home, with the Internet (92 percent) and real estate agents (87 percent) leading the way. Other ways included mobile or tablet applications (50 percent), mobile or tablet search engines (48 percent), yard signs (48 percent) and open houses (44 percent).

Ninety percent of home buyers who searched for homes online ended up purchasing their home through an agent,” according to Yun. “In fact, buyers who used the Internet were more likely to purchase their home through an agent than those who didn’t (67 percent). Realtors® are not only the source of online real estate data, they also use their unparalleled local market knowledge and resources to close the deal for buyers and sellers.”

When buyers were asked where they first learned about the home they purchased, 43 percent said the Internet (unchanged from last year, but up from 36 percent in 2009); 33 percent from a real estate agent; 9 percent a yard sign or open house; 6 percent from a friend, neighbor or relative; 5 percent from home builders; 3 percent directly from the seller; and 1 percent a print or newspaper ad.

Likely highlighting the low inventory levels seen earlier in 2014, buyers visited 10 homes and typically found the one they eventually purchased two weeks quicker than last year (10 weeks compared to 12 in 2013). Overall, 89 percent were satisfied with the buying process.

First-time buyers plan to stay in their home for 10 years and repeat buyers plan to hold their property for 15 years; sellers in this year’s survey had been in their previous home for a median of 10 years.

The biggest factors influencing neighborhood choice were quality of the neighborhood (69 percent), convenience to jobs (52 percent), overall affordability of homes (47 percent), and convenience to family and friends (43 percent). Other factors with relatively high responses included convenience to shopping (31 percent), quality of the school district (30 percent), neighborhood design (28 percent) and convenience to entertainment or leisure activities (25 percent).

This year’s survey also highlighted the significant role transportation costs and “green” features have in the purchase decision process. Seventy percent of buyers said transportation costs were important, while 86 percent said heating and cooling costs were important. Over two-thirds said energy-efficient appliances and lighting were important (68 and 66 percent, respectively).

Seventy-nine percent of respondents purchased a detached single-family home, 8 percent a townhouse or row house, 8 percent a condo and 6 percent some other kind of housing. First-time home buyers were slightly more likely (10 percent) to purchase a townhouse or a condo than repeat buyers (7 percent). The typical home had three bedrooms and two bathrooms.

The majority of buyers surveyed purchased in a suburb or subdivision (50 percent). The remaining bought in a small town (20 percent), urban area (16 percent), rural area (11 percent) or resort/recreation area (3 percent). Buyers’ median distance from their previous residence was 12 miles.

The typical seller over the past year was 54 years old (53 in 2013; 46 in 2009), was married (74 percent), had a household income of $96,700, and was in their home for 10 years before selling, a new high for tenure in home. Seventeen percent of sellers wanted to sell earlier but were stalled because their home had been worth less than their mortgage (13 percent in 2013).

Yun attributes the increase in seller’s age and tenure in home to rebounding home prices. “Faster price appreciation this past year finally allowed more previously stuck homeowners with little or no equity the ability to sell after waiting the last few years,” he said.

Sellers realized a median equity gain of $30,100 ($25,000 in 2013) – a 17 percent increase (13 percent last year) over the original purchase price. Sellers who owned a home for one year to five years typically reported higher gains than those who owned a home for six to 10 years, underlining the price swings since the recession.

The median time on the market for recently sold homes dropped to four weeks in this year’s report compared to five weeks last year, indicating tight inventory in many local markets. Sellers moved a median distance of 20 miles and approximately 71 percent moved to a larger or comparably sized home.

A combined 60 percent of responding sellers found a real estate agent through a referral by a friend, neighbor or relative, or used their agent from a previous transaction. Eighty-three percent are likely to use the agent again or recommend to others.

For the past three years, 88 percent of sellers have sold with the assistance of an agent and only nine percent of sales have been for-sale-by-owner, or FSBO sales.

For-sale-by-owner transactions accounted for 9 percent of sales, unchanged from a year ago and matching the record lows set in 2010 and 2012; the record high was 20 percent in 1987. The share of homes sold without professional representation has trended lower since reaching a cyclical peak of 18 percent in 1997.

Factoring out private sales between parties who knew each other in advance, the actual number of homes sold on the open market without professional assistance was 5 percent.

The 2014 NAR Profile of Home Buyers and Sellers can be ordered by calling 800-874-6500, or online at www.realtor.org/prodser.nsf/Research. The study costs $19.95 for NAR members and $249.95 for non-members. Highlights of the report are available at no cost.

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

  This article was published on September 18, 2014. All information contained in this posting is deemed correct and current as of this date, but is not guaranteed by the author and may have been obtained by 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.

Fewer Home Sales and Slower Price Increases for August 2014

up and down arrows (Jeff Sorg, OnlineEd) –  The RE/MAX® National Housing Report reveals fewer home sales and slower price increases for August 2014. According to the report, home sales remained below the pace set in 2013, as has been true throughout 2014.  Median Sales Price of all homes sold in the 52 metro areas surveyed this August was $202,500, which is 7.5% higher than the median price for August 2013. While prices continued to climb, it was at a much slower rate than 2013. The inventory of homes for sale was 4.45 percent lower than last year.

“Although 2014 home sales may not reach the levels seen in 2013, the market has performed much stronger than many had predicted early in the year. This year’s market may have started off slowly, but it bounced back and slower price growth is keeping housing from becoming less affordable,” said Margaret Kelley, RE/MAX, LLC CEO.

In the 52 metro areas surveyed in August, the number of home sales dropped 6.6% below the sales in July and also fell 8.2% lower than August 2013.

Four of the last six months have reported higher sales than the previous month. Only Charlotte, NC; Tulsa, OK; Nashville, TN; and Tampa, FL reported year-over-year increases in August.

Click here to download a copy of the report in pdf.

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  This article was published on September 17, 2014. All information contained in this posting is deemed correct and current as of this date, but is not guaranteed by the author and may have been obtained by 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.

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

CFPB Goes Hunting for Zombie Foreclosures

From 2006 to today, 10 million homes have fallen into foreclosure.   Of those homes, more than 2 million remain in foreclosure.  An estimated 152,000 homes are zombie foreclosures.   That's 22% of the 676,000 homes that are owned by banks but are not listed for sale.

Zombie foreclosures can cost already struggling borrowers thousands of dollars.

(Joseph Mikkelson, OnlineEd) Zombies have been enjoying a renaissance as of late. Ever since George Romero’s 1968 film, “Night of the Living Dead,” zombies have maintained a steady presence in the media. However, one doesn’t have to look far to see that their popularity has risen to new heights in recent years. Zombies are represented in the theater, on TV, in adventure 5K races, and now in . . . real estate?

With the flood of foreclosed homes in 2008, many banks found that many low-value properties simply weren’t worth the cost to repair the home, and opted not to complete the foreclosure. Zombie foreclosures are properties that have had foreclosure proceedings initiated and have been vacated by the owners, but have not yet been reclaimed by banks. The owner of the foreclosed home may have been long gone, only to find out years later that he or she technically still owns the home and may owe thousands.

The walking dead these properties may not be, but they still pose a threat to borrowers. The CFPB aims to help bring these zombie properties back to life.

“The CFPB is beginning to look very closely at abandoned properties and zombie foreclosures. There is direct borrower harm if a borrower believes a foreclosure on their property has been conducted and they are no longer responsible, and months or years later find out that they are, that there was never a foreclosure and they have large financial responsibilities that they never knew about.” – Laurie Maggiano, CFPB servicing and secondary markets program manager

[ezcol_2third]Servicers typically send dozens of letters and calls to defaulted homeowners notifying them that their home is going into foreclosure, but usually don’t communicate nearly as well, if at all, when the foreclosure is stalled. The CFPB found it was “extremely common” for servicers to charge off low-balance loans and not notify borrowers or municipalities if they did not take title to the property. Consequently, borrowers had no idea that they were still on the hook for continuing to pay not only the mortgage debt, but code violations, municipal services, taxes and upkeep as well.[/ezcol_2third] [ezcol_1third_end]

Quick Facts:

  • Since 2006, 10 million homes have fallen into foreclosure.
  • More than 2 million homes remain in foreclosure.
  • An estimated 152,000 homes are zombie foreclosures.

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The CFPB indicated that consumers had repeatedly asked the agency for help, saying the servicers were not complying with disclosure requirements. The agency has joined a task force to identify the estimated 152,000 zombie properties. It intends to help resolve the problem by creating a national definition of “abandonment,” which will accelerate the foreclosure process, making vacant homes available for transfer to potential owners, as well as creating a national registry of these zombie properties.

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This article was published on March 14, 2014. All information contained in this posting is deemed correct and current as of this date, but is not guaranteed by the author. Due to the fluid nature of the subject matter, regulations, requirements, 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.

Michael Milken: How Housing Policy Hurts the Middle Class

(MICHAEL MILKEN, Wall Street Journal – March 5, 2014) The American dream traditionally meant that anyone could get ahead based on ability and hard work. But over the past few decades, the United States government created incentives through housing programs and the tax code that changed the dream for many Americans. Middle-class families began to think of homes as investments, not just shelter. When the housing market crashed, everyone suffered—homeowners, investors, wage-earners and taxpayers.Aggressive housing programs have not always helped the poor and middle class.
ED-AR922_milken_G_20140305175404(1)The median net worth of American adults is now one of the lowest among developed nations—less than $45,000, according to the Credit Suisse CSGN.VX -0.42% Global Wealth Databook. That compares with approximately $220,000 in Australia, $142,000 in France and $54,000 in Greece. Almost a third of American adults have a net worth of less than $10,000. Those statistics don’t convey the pain endured by millions of American families who lost their homes.
The American dream traditionally meant that anyone could get ahead based on ability and hard work. But over the past few decades, the United States government created incentives through housing programs and the tax code that changed the dream for many Americans. Middle-class families began to think of homes as investments, not just shelter. When the housing market crashed, everyone suffered—homeowners, investors, wage-earners and taxpayers.Aggressive housing programs have not always helped the poor and middle class.  (Read the rest of the story)

Green Home Building Continues to Climb, Valued at $36 Billion in 2013

canstockphoto16053461(National Association of Home Builders) – February 4, 2014 – McGraw Hill Construction, a part of McGraw Hill Financial (NYSE: MHFI), today released findings from a new Green Home Builders and Remodelers Study at the National Association of Home Builders (NAHB) International Builders’ Show in Las Vegas. Green homes comprised 23% of the overall residential construction market in 2013 and are expected to grow to between 26% and 33% of the market by 2016. This equates to a doubling in the value of green home construction over three years, growing from $36 billion in 2013 to $83-$105 billion in 2016, based on the current McGraw Hill Construction forecast for total residential construction.

According to McGraw Hill Construction research dating back to 2006, the green home building market most rapidly accelerated during the housing downturn when builders experienced in green remained in business at higher proportions than those not knowledgeable about energy-efficient and green home building. As the residential market improves, indications are that the residential market is becoming bifurcated, with green builders accelerating the depth of their green work, and new or returned entrants into the market focusing on traditional construction practices.

“Green experience was a significant part of what kept builders in business during the recession,” said Harvey M. Bernstein, VP of Industry Insights and Alliances, McGraw Hill Construction, “and now, those same firms are embracing the competitive advantage they earned by deepening their delivery of energy-efficient and green homes. We also see firms reentering the market that are using traditional home building practices versus green practices because that’s what they know. However, the broader availability of green building products and practices, a more educated consumer and an increase in activity at the regulatory level will also encourage this group of builders to learn green practices over time.”

The study shows that the top drivers to increased green home building activity include changes in codes and regulations, better quality, wider availability and affordability of green products, energy costs, and competitive advantage.

The green home building study, produced by McGraw Hill Construction in conjunction with the NAHB, is the fourth in a series that dates back to 2006. It was designed to provide key insights into market opportunities, backed by proprietary research surveys and the power of the Dodge database. The study reveals business benefits afforded by green building:

– Competitive marketing advantage: 51% of builders and remodelers find that it is easier to market green homes, up from 46% in 2012 and 40% in 2008.

– Customer willingness to pay for green features:

o 68% of builders (up from 61% in 2011) report their customers will pay more for green, with 23% reporting that their customer will pay more than 5%

o 84% of remodelers report the same (up from 66% in 2011), with 55% reporting their customers will pay more than 5% for green features.

“This study shows that more and more builders are incorporating environmentally sensitive and energy and resource efficient techniques into traditional home building practices, and we expect to see even stronger growth in the coming years,” said Matt Belcher Co-Chair of NAHB’s Energy & Green Building Subcommittee and a Builder from Wildwood, MO. “Green building expertise provided builders and remodelers with a competitive advantage during the housing downturn, and now as the market continues to recover, NAHB members stand ready to meet the increased demand.”

In 2013, 16% of builders were dedicated to green building with more than 90% of their projects green, and another 20% were highly invested in green activity with 61% to 90% of their projects green. By 2015, that is expected to increase, with 20% of builders expecting to be exclusively working on green buildings, and 24% doing 61% to 90% green work. Remodelers are also increasing their attention to green work, with 16% reporting more than 60% of their projects are green today, expected to grow to 23% doing this amount of green remodeling in 2015 and 32% by 2018.

This spring McGraw Hill Construction will publish its 4th SmartMarket Report on the green home building marketplace, which will include these findings with additional analysis and new market research data on the trends of the multifamily builder. In the meantime, key findings from the study can be found at analyticsstore.construction.com/GreenHomeKeyFindings14.

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This article was published on January 20, 2014. All information contained in this posting is deemed correct and current as of this date, but is not guaranteed by the author. Due to the fluid nature of the subject matter, regulations, requirements, 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.

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

 

 

Real Estate Office Manager’s Policies and Procedures Manual Template

canstockphoto9986430 rulebook rules rule book  (OnlineEd – Portland, OR) – If your real estate office does not have a policy and procedure manual, you might find the template from ARELLO helpful. ARELLO, the Association of Real Estate License Law Officials, has developed a policy and procedures manual guide to help real estate office managers to create their own. The guide, prepared by real estate regulators, is designed to assist in brokerages with succeeding in business and reduce liability.

ARELLO offers this disclaimer for users of their guide: “This guide has been prepared by the Association of Real Estate License Law Officials (ARELLO®) as a basic template that can be modified by brokers to fit the particular set of policies, laws and rules in their respective jurisdiction. Brokers are encouraged to seek legal counsel in the development of their company policies and procedures.”

Get the guide here! 

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  •  OnlineEd® is an approved education provider and licensed vocational and post secondary school offering real estate, mortgage, contractor, and insurance courses for continuing and pre-licensing education.
  • For more information about OnlineEd®, please visit www.OnlineEd.com or contact 866.519.9597
  • This article was published on August 16, 2013.  All information contained in this posting was current as of this date.  Due to the fluid nature of the subject matter, regulations, requirements, laws, prices and all other information may or may not be correct in the future and if cited, should be verified by the author before use.

8 New Mortgage Regulation Deadlines Coming Out of the CFPB

OnlineEd Mortgage Compliance Management System

OnlineEd

(OnlineEd – Portland, OR) – The Consumer Financial Protection Bureau (“CFPB”) gave 12 months (and sometimes less) from the “issue date” to implement the majority of these new requirements.  Because the CFPB considers the “issue date” as the date of publication on the CFPB’s website – rather than publication in the Federal Register,  your company will have less time to comply with the final rules.

Below lists the recent regulations along with a link to the regulation page on the CFPB website and the effective date.

June 1, 2013 – Escrow Requirements for Higher-Priced Mortgage Loans

June 1, 2013 – Prohibition on Mandatory Arbitration and Financing of Credit Insurance Premiums (from MLO Compensation Regulation)

January 10, 2014 – Qualified Mortgage and Ability-to-Repay Requirements

January 10, 2014 – Mortgage Servicing Requirements – Reg Z (TILA) and Reg X (RESPA)

January 10, 2014 – Loan Originator Compensation and Training, Certification and Identifier Disclosure

January 10, 2014 – High-Cost/HOEPA Mortgage Loans and Homeownership Counseling Disclosures

January 18, 2014  – Disclosure and Delivery of Free Copies of Appraisals – Regulation B

January 18, 2014 – Appraisals for Higher-Priced Mortgage Loans

Make sure your company is keeping tabs on when these regulations go into effect and has a plan in place to ensure complete compliance in the event of an audit.

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If you would like information about OnlineEd’s® Compliance Management System, InlineEd, developed for the mortgage industry, please visit www.InlineEd.com or telephone (866) 519-9597.

If you have questions or would like to learn more about OnlineEd®, please visit www.OnlineEd.com.

This article was published on May 15, 2013.  All information contained in this posting is correct and current as of this date.  Due to the fluid nature of the subject matter, regulations, requirements, laws, prices and all other information may or may not be correct in the future and if cited, should be verified before use by the user.

Get Compliant – And How to Stay that Way!

Check compliance off your list!

Compliance is a hot topic today, as the landscape is constantly shifting and being redefined as the mortgage and real estate industry stabilizes in the wake of the financial crisis. Understanding what these new and changing compliance requirements are can be a headache, but OnlineEd.com has a few tips that can help you be prepared in the event of a CFPB audit.

In January 2013, the CFPB finalized new requirements to the HOEPA rule, ECOA valuations rule, and the TILA high-priced mortgage appraisal rule, changes which will be effective January of next year. Over the past couple of years, many similar changes have been made and are currently enforced, and this can make compliance a nightmare to those caught unprepared.

These deadlines can seem like a daunting prospect, producing stress as many companies sprint towards the finish line. However, it can be dangerous to look at compliance deadlines as a finish line or as a summit. Many requirements, such as FinCEN’s AML compliance requirement, stipulate ongoing education and annual completion of compliance by all relevant staff. The danger of this “finish-line” view of compliance deadlines is fairly straight-forward; just because you were compliant on time once, doesn’t necessarily mean that you will be compliant 18 months later when the CFPB or state agencies come knocking with an audit. New employees, staffing changes and promotions, and changes in requirements can all impact your company’s compliance down the road.

Luckily, preparing for a potential audit doesn’t have to be hard. The CFPB is very good at publishing guides well ahead of time, such as this guide to the new HOEPA rule, to assist companies looking to get in line with their requirements. There are also services that can make the whole process a breeze if you don’t have the time or means to develop your own dedicated compliance program. Find out more about what these services can do for you here.

The key is to act preemptively, and to make sure that you have a plan in place to be covered in the future.

“Being reactive in compliance is always much more expensive and painful than being proactive,” said Michael Waldron, a partner at the law firm Ballard Spahr.

In the spirit of being proactive, here are a few best practices to help you get the ball rolling on becoming compliant:

  • Stop thinking of compliance as a “one-and-done” type of situation. Make sure that you have a system in place to ensure you’ll be just as compliant in 18 months as you are today.
  • Don’t procrastinate or cross your fingers and hope you don’t get an audit. The CFPB has said that they are looking to audit everyone, so don’t be caught with your head in the sand!
  • Make sure that you are not only compliant, but that you can demonstrate it with thorough documentation and records-keeping, whether with an internal system or through a third party like InlineEd.

 

Hopefully this helps you and your company in your efforts to stay on the right side of the CFPB. Until next time, thank you for reading!

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If you have questions or would like to learn more about OnlineEd®, please visit www.OnlineEd.com. If you would like information about OnlineEd’s® Compliance Management System solution developed for the mortgage industry, please visit www.InlineEd.com or telephone (866) 519-9597.

This article was published on May 8, 2013.  All information contained in this posting is correct and current as of this date.  Due to the fluid nature of the subject matter, regulations, requirements, laws, prices and all other information may or may not be correct in the future and if cited, should be verified before use by the user.

4 Oregon Real Estate Education Changes For 2013

(OnlineEd – Portland, OR) -Effective January 1, 2013 the Oregon Real Estate Agency implemented the following changes to real estate broker pre-licensing education, principal broker licensing education, property manager education, and real estate broker advanced practices education:

  1. Real Estate Broker Pre-License: Pre-license qualifying education courses taken after January 1, 2013 must have received a new approval from the Oregon Real Estate Agency. The OnlineEd® Oregon Real Estate Broker Pre-License Course is already compliant with these new rules and approved by the Oregon Real Estate Agency and the Association of Real Estate License Law Officials (ARELLO) to meet the 2013 requirements. Pre-license qualifying education is available from the OnlineEd® pre-license course catalog. Other changes recently implemented require the license candidate to make license application and pay the application fee in advance of being able to schedule a state licensing examination. The exam proctor is also responsible for fingerprinting and background check applications, which are completed during the applicant’s examination appointment. All fees paid to the exam proctor and OREA are nonrefundable.
  2. Property Manager Advanced Practices: All property managers must take the 27-hour Property Manager Advanced Practices course prior to the first active renewal of their license.  The OnlineEd® Property Manager Advanced Practices course is already compliant with the 2013 rule and approved by the Oregon Real Estate Agency. The course is found in our continuing education catalog.
  3. Real Estate Broker Advanced Practices: All real estate brokers must take the 27-hour Broker Advanced Practices course prior to the first active renewal of their license. The OnlineEd® Broker Advanced Practices course is compliant with the 2013 rule and approved by the Oregon Real Estate Agency. Broker Advanced Practices is found in our continuing education catalog. Law and Rule Required Course (“LARRC”) cannot be included in either Advance Practices course. Because licensees need 30 hours of approved education to renew, a LARRC course is still required. OnlineEd® offers LARRC free with both of the Advanced Practices courses.
  4. Principal Broker Qualifying Education, Brokerage Administration and Sales Supervision: Brokers who want to become a Principal Broker must complete a 40-hour Oregon Real Estate Agency approved Brokerage Administration and Sales Supervision course. As of January 1, 2013, this course was greatly expanded and more difficult than its predecessor. There is also a new and longer licensing exam for principal broker licensing.  The OnlineEd® Brokerage Administration and Sales Supervision (BASS) course is compliant with the January 1, 2013 requirements and approved by the Oregon Real Estate Agency. To assist in passing the licensing exam, the course comes with an exam prep module. Brokerage Administration and Sales Supervision is available in our continuing education catalog.

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 OnlineEd® is Oregon Real Estate Agency approved continuing education provider number 1038.  OnlineEd® is an Oregon licensed vocational school offering real estate, mortgage, contractor and insurance courses. OnlinEd is also the developer of InlineEd, a Compliance Management System solution for the mortgage industry.

For more information about OnlineEd®, please visit www.OnlineEd.com.