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 Bonnie Becker  Wednesday, March 30th, 2011  SAVING YOU TIME
C.A.R. Enters the Blogosphere— Curious about the perils of refinancing? Longing for sage advice from a real estate lawyer? Wondering if the latest tech gadget is really worth the investment? Log on to the new C.A.R. blog (http://blog.car.org) for these and other timely posts. The resourceful blog offers tips of the trade, industry news, tech talk, first-person tales from the trenches, and more. C.A.R. staff members contribute to the easy-to-read blog, which includes new posts several times a week, but the blog also is open for guest blogging. If you have wise tips or stories of success you’d like to share with other members, contact Lindsey Moss at lindseym@car.org. However, be warned: This is a pitch-free zone, so submissions aren’t about self-promotion.
SAVING YOU MONEY
Two Days in Sacramento—Mark your calendars for early May to attend Legislative Day (May 4) and California REALTOR® Showcase (May 5) in Sacramento. Legislative Day offers members an opportunity to descend on Capitol Hill and meet with their state legislators to discuss issues that affect the real estate industry. The day starts with a morning briefing at 9 a.m. Members interested in attending can register through their local association. For more information, visit http://www.car.org/governmentaffairs/getinvolved/legday/. The following day, California REALTOR® Showcase serves up free seminars on the latest developments in social media, how to navigate a short sale transaction, and what industry top producers are doing to succeed in today’s market. In addition to a tabletop exhibit, California REALTOR® Showcase also will feature a luncheon lecture, “Why Lenders Can’t Lend: The Uncertain Future of Real Estate Finance,” presented by C.A.R. CEO Joel Singer. Tickets are $55 through April 28; $60 onsite. For more information, visit www.car.org/meetings/showcase.
Continue reading: C.A.R.’s Your Membership, Your Way April 2011
Nelson Janes Tuesday, March 15th, 2011
 The “Main” Membership Meeting happens on the first Tuesday of the month at 9:00 a.m. in the Mack Powell Auditorium. Terrific speakers bringing information that you need, Starbucks coffee, Ettore’s pasteries all free.
If you missed Carole Rodoni’s economic forecast at the February Meeting, you missed a dynamic and highly entertaining presentation. Ms. Rodoni, who has headed several major real estate firms, peppers her economics with biting humor
Rodoni prefaced her 2011 forecast with a brief overview of what brought us to this economy. Following the dot.com bust in the early 2000s the federal government wanted to stimulate the economy by having homeownership grow from 56 to 70 percent. As a result, the market grew from five to seven million homes sold annually – one half of those to investors.
Homes were appreciating 50 to 100 percent a year as compared with the normal seven percent average appreciation. The sellers’ market, which usually lasts about 18 months, lasted for five years and the deepest downturn in real estate history resulted.
Subprime loans in the marketplace moved from 7 to 25 percent and then were bundled and sold abroad. For example, New Century which was publicly traded on the NYSE had a $50 billion portfolio of subprime loans. At the same time, one in four Countrywide loans was subprime.
Rodoni reported that we are now technically out of the great recession with a 2.5% growth rate in 2010. However, an economy the size of the U.S. needs to expand by five to six percent annually to show signs of strong recovery.
Continue reading: Carole Rodoni Gives Dynamic Presentation on the Economy
Scott Short Friday, March 11th, 2011
 On Friday, January 28th, HUD/FHA extended the “Less Than 90-Day” flip rule. Now trying to find a lender who will allow the seller to resell for 20%+ over what they bought it for is becoming more difficult.
Last October HUD/FHA increased the Monthly Mortgage Insurance (MMI) cost from .55% to .90% for a 30-year fixed with a minimum down payment loan. During that time, HUD/FHA also lowered the Up Front Mortgage Insurance Premium (UFMIP) they finance into the loan from 2.25% to 1%.
In a move to increase their capital reserves and encourage private money back into mortgages, HUD/FHA will once again raise the MMI cost. On April 18 MMI goes from .90% to 1.15% for 30- and 15-year fixed loans with minimum down payment. (Since April 18 is a Monday, your loan professional needs to pull the case number on Friday April 15 to avoid this increase.)
One positive outcome for homebuyers from this new change is that the HUD/FHA system will automatically cancel any uninsured case number where there has been no activity for six months since the last action except for:
- Loans where an appraisal update has been entered, and/or
- Loans where the Upfront Mortgage Insurance Premium (UFMIP) has been received
Last action includes:
- Case number assigned
- Appraisal information entered
- Firm commitment issued by FHA
- Insurance application received and subsequent updates and
- Notice of Return and Resubmissions
Continue reading: The Cost of Working with FHA is Going Up Again
Beth L. Peerce Wednesday, March 9th, 2011
 Dear REALTORS®,
As you may know, C.A.R. has been working on numerous efforts to address your concerns about the difficulty of working with short sales.
To that end, I want to give you advance notice of perhaps one of our most visible activities to date, and one that may be a first in C.A.R.’s 100-plus-year history.
Tomorrow, C.A.R. is placing an open letter advertisement in California’s seven largest daily newspapers, calling on lenders and industry regulators to streamline and improve the short sale process. C.A.R. is taking a leadership role in this effort by getting this letter published and pointing out lenders’ and servicers’ unworkable short sale processes. We’re also appealing to various constituencies, such as regulators, elected officials, nonprofits, business organizations, companies, and individuals to join us so that more families are able to arrange a short sale, rather than lose their homes.
In the letter, I write, “With the number of homeowners who owe more than their mortgage is worth hovering at 30 percent, experts predict there will be many more foreclosures in 2011 and 2012. Unless we take immediate, aggressive action to assist these homeowners, any meaningful recovery in the housing market and overall economy will continue to be delayed.”
Continue reading: C.A.R. Short Sale Update
Beth L. Peerce Tuesday, March 8th, 2011
Dear REALTORS®,
Over the past few months, I’ve been sharing with you the many things that C.A.R. has been doing to address your concerns related to short sale transactions. We recently conducted a survey to obtain information about members’ experiences working with lenders in distressed transactions. The results of the Short Sale Lender Satisfaction Survey were released just today, and I’d like to reveal some of the findings to you. (See the full results.)
- The survey found that fewer than three in five short sales close in California, which illustrates the complexity and difficulty of navigating lenders’ and servicers’ short sale procedures.
- The most frequent problems REALTORS® cited in working with lenders and servicers during the short sale process include unresponsiveness, onerous procedures, and long processing delays – problems that many of you probably have experienced firsthand.
Overall, the survey results show that the short sales system is clearly flawed and must be standardized and streamlined to reduce the inventory of foreclosures. I want you to know that C.A.R. has been working on many fronts to make this happen. It has appointed two distinct task forces just to help address this issue. In addition to conducting the Short Sale Lender Satisfaction Survey, another of the action items the task forces have undertaken is writing an open letter to consumers focusing the spotlight on short sales.
Continue reading: C.A.R. Monthly Message March 2011
Doug Covill Thursday, March 3rd, 2011
 When we talk about SAR as “Your Bridge to Success,” you may think of education and networking.
Have you thought about the importance of community service to your success? Just about every good business person gives something back to their community. And thank heavens we don’t need the money or the clout of a Bill Gates to make a difference.
I hear from some REALTORS® – fortunately, not too many – who have no interest in getting involved at SAR. After all, their fellow REALTORS® are not potential clients and they want to hang out with people who can bring them business. They may be successful, but they are not making their community stronger.
Those of you who do give so much are building strong communities. Whether it’s raising money for the Salvation Army through CanTree or pounding nails for Rebuilding Together, or one of the countless neighborhood projects you do on your own with little recognition, you’re improving the image of REALTORS® while you give back.
Many of you are generous with your time and talent just because it’s the right thing to do. But it does contribute to your success in the long run. Several local elected officials who may not always agree with us see how much REALTORS® do for the community. They don’t have to love us, but being willing to listen is a huge gain. Our clients also see what we do. Giving back builds trust with our clients.
Continue reading: Building Strong Communities
Caylyn Brown Wednesday, March 2nd, 2011
The House could vote this week on legislation to repeal small business Form 1099 reporting requirements that were enacted in health care reform and landlord reporting requirements that were enacted in small business legislation last year. NAR supports repeal to save its members from overly burdensome tracking and reporting requirements. Under the provisions, property [...]
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