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 Beth L. Peerce  Tuesday, December 14th, 2010  Dear C.A.R. Member,
It’s hard to believe this year is soon coming to a close. We’ve accomplished a lot over the past year, but we still have much to do in 2011.
For instance, we know we will have to defend changes to the mortgage interest deduction (MID). In late November, President Obama’s Deficit Reduction Commission released its preliminary recommendations, and one of the provisions called for dramatically limiting the MID. Since then, the commission failed to win enough votes to approve the recommendations. However, it is very likely that legislation will be introduced next year to curtail the MID. Few issues are more important to homeownership than the mortgage interest deduction, and while the housing market continues to recover, any change that reduces the ability of the market to heal is misguided and must be rejected.
I want to thank everyone who responded to NAR’s Call for Action and urged their member of Congress to preserve the MID. Last week, NAR issued a new Call for Action asking all REALTORS® to call their state senators and ask them to defend the MID. I urge you to contact Sens. Dianne Feinstein and Barbara Boxer to voice your concerns today about limiting the MID.
In my first message to you last month, I mentioned that one of my goals this year as C.A.R. President is to help you, the REALTOR®, earn a living. I know many of us have been having a very difficult time working with lenders on short sales. Please be assured that C.A.R. has been working on several fronts to help you more easily deal with short sales and distressed properties.
Continue reading: December Message from C.A.R. President Beth L. Peerce
Scott Short Thursday, December 9th, 2010
 All I can say is WOW! This year has not been boring. Game changing events happened almost every month.
We started out the year with total confusion in the mortgage industry due to the new Good Faith Estimate (aka: GFE 2010). It took most mortgage professionals at least a month or two to understand the new form and the impact it would have on the consumers and themselves.
Consumers received overinflated GFEs to protect the loan officer from underdisclosing everyone’s fees in the transaction. If certain fees were underdisclosed, the loan officer would have to pay for it out of his/her pocket. One of the mysteries with the new GFE 2010 is that there is no place on the GFE 2010 to sign. There is a separate form for signatures. Now where is the consumer benefit from this change?
While struggling with the new GFE 2010, HUD/FHA released a waiver that they will allow “less than 90-day flips” to be financed with FHA loans (another program with a ton of misinterpretation).
Oh, did I forget to mention that HUD/FHA decided January 1, 2010 to adopt HVCC (Home Value Code of Conduct) practices for all their FHA loans. The industry thought HUD would have seen the “train wreck” Fannie and Freddie created with HVCC and steered away. But in the spirit of follow the leader, HUD jumped in with both feet. Can you say complexity, when you have HUD’s version of HVCC and the new appraisal requirements for the “less than 90-day flips?” This is just another reason the industry slowed down even more at the beginning of the year.
Continue reading: Real Estate Finance Forum – The Year in Review
Janelle Fallan Thursday, December 2nd, 2010
Mortgage banker Rob Chrisman, San Rafael, spoke to the Real Estate Finance Forum on Dec. 2 on the current state of capital markets.
Mr. Chrisman writes a daily on-line column on the mortgage business at robchrisman.com.
He discussed the current uncertainty in how mortgage originators are compensated. New federal regulations (Dodd-Frank act) will take effect April 1, 2011. In the meantime, many of the larger banks are also issuing their own rules. He expects “lots of rumors and innuendo” until all the rules are in place.
He credits mortgage brokers as “intelligent and nimble.” “You’ll figure out a way to do a loan” because the mortgage brokers who are still in the business are there because they like helping people.
“People with other motives,” such as those who came to mortgage origination just because it was a job, are gone.
Relationships have become much more important in mortgage origination, Mr. Chrisman said. “Your clients like using you. (Lending) is much more of a team effort.”
Continue reading: Mortgage Banker Rob Chrisman Speaks at the SAR Real Estate Finance Forum
Steve Goddard Wednesday, October 13th, 2010
 Steve Goddard - 2010 C.A.R. President
Dear C.A.R. Member,
No doubt you’ve heard the news recently that a number of major banks have volunteered to temporarily suspend foreclosures in 23 states and Bank of America is temporarily suspending foreclosures nationwide.
While this situation is changing daily, I want to tell you what we currently know to answer any questions you may have.
- In late September and early October some lenders and servicers began voluntarily halting foreclosures in select states while they reviewed their foreclosure processes.
- So far, only Bank of America has extended its foreclosure moratorium to California, where the vast majority of foreclosures are conducted without a court order. Foreclosures in the other 23 states are processed through the court system.
- Non-judicial foreclosures in California, however, do have legal requirements that lenders must follow. For example, California law requires that lenders for certain mortgage loans made between Jan. 1, 2003, and Dec. 31, 2007, attempt to make contact with borrowers to discuss options for avoiding foreclosure at least 30 days before filing a notice of default. Lenders also must sign a declaration in the notice of default stating that they tried to contact the borrower, made contact with the borrower, or fall within an exception (such as a bankruptcy filing).
- The lenders and servicers that have placed their foreclosure moratorium on properties in the 23 states where courts are involved in the foreclosure process include: Goldman Sachs Group Inc’s Litton Loan Servicing, Ally Financial Inc.’s GMAC Mortgage unit, JPMorgan Chase, and PNC Financial.
- These lenders/servicers have only temporarily halted their foreclosures while they review their foreclosure process. This is in response to findings that questioned whether some lenders/servicers were following the correct procedures to foreclose on a property.
- This halting of foreclosures is a voluntary action taken on the part of these lenders/servicers and has not been mandated by either the states or the federal government.
- Some members have begun to report the immediate impact of this moratorium on transactions that involve foreclosed properties. Delays in escrow and the removal of listed foreclosures are temporary results of this moratorium.
- The immediate impact on the market will be the slowing of home sales, which could put upward pressure on home prices in the short term. The long-term effect on the market is uncertain at this point as it depends how long the moratorium remains in place.
- Assuming the moratorium is lifted in the next month, the flow of REOs to the market should resume, but the uncertainty created by the moratorium may cause hesitation on the part of buyers.
- Federal agencies, including the Office of the Comptroller of the Currency, the Federal Housing Administration, and the conservator of Fannie Mae and Freddie Mac, have asked lenders and servicers to review their foreclosure processes. This review would apply to all states including those like California where the vast majority of foreclosures are non-judicial.
- The participating lenders and servicers believe their internal review processes should take anywhere from a few weeks to 30 days to complete.
Continue reading: Recent Foreclosure Trends and Information
Steve Goddard Tuesday, May 11th, 2010
Steve Goddard - 2010 C.A.R. President Dear C.A.R. Member,
Greetings from Washington, D.C.! This week, your Leadership Team and I are in our nation’s capital, meeting with California’s congressional delegates and representatives from leading housing industry groups, including Fannie Mae and Freddie Mac, HUD, the Mortgage Bankers Association, and others. Tomorrow, we’re meeting with Senator Boxer’s Chief Economic Advisor, Marcus Stanley, and Housing Coordinator Jeff Moscovitz. On Thursday, we’ll meet with FHA Commissioner David Stevens, and on Friday with Grace Cooper, the acting director of the Veterans Administration, and Bill White, the VA’s loan service supervisor.
What happens in Washington has far-reaching implications for the housing market back home in California and its impact reverberates through all facets of the real estate industry, including our own. That’s why it’s more important than ever to become involved in the political process. Our goal in Washington is to make certain that our interests are represented, and that our voices are heard, before elected officials craft legislation impacting our industry.
This is a busy time of year in the legislative arena, on both the national front and in California. Following our federal lobbying trip, nearly 2,000 REALTORS® will converge in Sacramento on June 9 for the Association’s annual Legislative Day activities. Legislative Day is a great way to meet face-to-face with your state legislators to discuss the issues that affect our industry — and your livelihood — the most. Assembly Speaker John Pérez and Senator Dennis Hollingsworth are set to kick off the Morning Briefing, followed by opportunities to meet with your own elected officials in the afternoon.
If you’ve always wondered how Sacramento works, or what elected officials really do, this is your opportunity to find out firsthand. If you’ve never participated, I hope you’ll consider doing so this year – please add your voice with that of other REALTORS® and join us.
Continue reading: Your May Message from C.A.R. President Steve Goddard
Caylyn Brown Tuesday, July 28th, 2009
California Association of REALTORS® Federal Governmental Affairs Manager Matt Roberts hosted an excellent webinar on the Home Valuation Code of Conduct (HVCC). NAR, C.A.R., and SAR are listening to members, and know that HVCC caused problems in the industry.
HVCC was implemented in March 2008, after the New York Attorney General studied inflated home prices, including some in California. HVCC is not a regulation or a law, but a guideline for private businesses. The original intent was to help enhance integrity in the mortgage industry, and it was to only apply to Fannie and Freddie. C.A.R. learned from members that most loans are now subject to HVCC, because appraisal management companies (AMC’s) decided it is easier to hold all loans to the same criteria.
Continue reading: HVCC Webinar
Charles McMillan Friday, July 24th, 2009
To: All REALTORS®
From: Charles McMillan, 2009 NAR President
Re: UPDATE: FHFA and GSEs Act on HVCC Concerns
Dear Fellow REALTOR®,
I am writing to you with an important update on NAR’s efforts to address ongoing problems with recent changes to appraisal rules.
As a direct result of my recent meetings with the New York Attorney General’s office, the Federal Housing Finance Agency, and Fannie Mae, both Freddie Mac and Fannie Mae this week issued new guidance to all lenders on the Home Valuation Code of Conduct.
The alert clarifies two very important points that we raised in our meetings with officials. First, it states that lenders should use appraisers who have clear experience in the geographic area. Second, it clarifies that appraisers are not prohibited from talking to real estate agents.
Continue reading: NAR Update: Fannie, Freddie Act on Appraisal Concerns
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