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April 19, 2007
NAR Urges Changes
to the FHA’s Mortgage Insurance Program
The National Association of REALTORS® last week urged the
U.S.
Department of Housing and Urban Development to change the Federal
Housing Administration’s (FHA)
mortgage insurance program.
Specifically, NAR wants to amend the FHA rules to help more homeowners
and their families avoid foreclosure.
One of the
NAR-proposed changes would waive the requirement that a homeowner’s
mortgage be current in order to refinance it into an FHA loan
product. According to NAR President Pat Vredevoogd Combs, many
homeowners were able to make their payments under their original
mortgage terms until the rates changed.
Thus, Combs
suggested the FHA design a mechanism for creditworthy borrowers to
refinance under stringent guidelines to avoid foreclosure.
Additionally, the NAR is calling for a “robust public education
campaign” to promote foreclosure prevention and raise awareness of the
FHA and HUD programs.
Help may also be
on the way for borrowers who are struggling to make subprime mortgage
payments. This past week, the Boston-based Neighborhood Assistance
Corporation of America announced it will offer $1 billion in
refinancing assistance to lower income home owners. Citigroup and
Bank of America will provide the financing for the initiative.
A recent survey
from the Mortgage Bankers Association indicates that more than 13
percent of subprime mortgages are at least 30 days delinquent.
Property Owners
Could Face New Fines, Liens in Boston
The Boston City
Council has approved a home rule petition that proposes to expand the
powers of the city’s Inspectional Services Division (ISD) by granting
the ISD permission to issue administrative fines and place liens on
properties that have been found to be in violation of a host of city
ordinances, and by reference, violations of the state sanitary code. The measure, which is opposed by the Greater Boston Real Estate Board,
now heads to the Massachusetts Legislature for consideration.
If approved on
Beacon Hill, the measure would allow fines and property liens to be
imposed for violations of zoning laws, regulations governing minimum
rental standards and rental re-inspections, and the ordinances related
to the transport, storage and disposal of trash. Additionally,
while GBREB officials were successful in amending some of the notice
provisions of the bill prior to its approval by the city council, it
still stipulates that notices of violations be affixed to buildings,
except where onsite professionally-managed property offices exist, in
which case notices must be presented at the property office during normal
business hours.
As the bill moves
forward to a public hearing, GBREB will continue to oppose this
measure due to the broad scope of possible violations that could be
expanded in the future, as well as the precedent it would create by exempting Boston from the state law governing all
other communities. Watch for further updates in future issues of
On the Home Front.
Can You Afford to Get Sick?
REALTORS® remember, beginning July 1, 2007 all Massachusetts residents
over the age of 18 must obtain health insurance that meets minimum
coverage requirements. This includes you! Individuals who
cannot show proof of health insurance coverage by Dec. 31, 2007, will
lose their personal income tax exemption when filing their 2007 income
taxes.
To help explain
this new law, its requirements, and options for healthcare coverage,
the Greater Boston Real Estate Board is hosting a “Legislative
Breakfast” on Thursday, May 3 at 60 State Street, 26th
Floor, in Boston featuring Senator Richard T. Moore, chairman of the
Committee on Health Care Financing, and Paul Wingle, director for
outreach for CommChoice,
Commonwealth Health Insurance Connector. Cost of the program is $10 for GBAR members and $20 for non-members.
Seating is limited, so please register early. Registration begins at
8:00 a.m. with the program beginning at 8:30 a.m. Click
here to download a registration form.
Fact or Fiction?
Magazine Article Causes REALTORS® to Sound Off
An article
published in PARADE magazine last week is causing some
controversy in the real estate world and has prompted a response from
the National Association of REALTORS®.
“5 Biggest Real
Estate Myths” published on April 8 addressed five real estate myths
consumers should consider before selling their home. Myth #1 disputed the need for a real estate broker to help sell a home. While
Myth #2 discussed whether a broker wants to get the highest price for
a client’s home.
In her letter to
the PARADE editor, NAR President Pat Vredevoogd Combs addresses
these myths. “The truth is that going it alone can end up costing not
saving you money. Sellers who use a real estate professional make 16
percent more on the sale of their home than do sellers who go it
alone,” explained Combs.
Combs also
suggests in her letter that consumers use a REALTOR® when selling a
home as they abide by a strict Code of Ethics that prevents them from
“pushing for the first reasonable offer.” To voice your opinion on
the article, visit
www.parade.com/opencms/do/readerContactUs.
2006 Numbers
Confirm Slower Real Estate Market in Bay State
In 2006 the median
price of a single family home in Massachusetts declined for the first
time in a dozen years to $325,000, according to “2006 The Year in
Numbers” published by The Warren Group.
For a free
electronic copy of the entire report (56 pages), which pertains to the
2006 trends in real estate, mortgage lending and foreclosures in
Massachusetts, click
here. The report is broken down
by county and
communities.
Also, watch for an
e-mail in the coming weeks announcing the launch of a quarterly
housing market report being produced by GBAR. This report will
include town-by-town data pertaining to the single family and condo
market, including sales, median prices, market time, pending sales and inventory
levels.
Architects,
Appraisers, and Home Inspectors, Oh My!
To no one’s
surprise the return to a more normal sales pace in the local housing
market has led to a steady decline in the ranks of many industry
professions in the past year.
According to a
recent article published in the
Boston Business Journal, there
has been a significant decline in the number of licensed architects,
home inspectors and real estate appraisers in Massachusetts over the
past year.
Meanwhile, the
number of real estate brokers and salespeople leveled off last year. There were 82,226 licensed real estate agents last year, unchanged
from 2005, but up 10 percent since 2003. However, as of
April 1, membership in the Greater Boston Association of REALTORS® is
up 2 percent over the same date a year ago – from 5,215 last April to
5,334 this month.
Among professions
whose ranks have declined, real estate appraisers have been hit the
hardest. The number of licensed appraisers fell 12 percent to 4,232
from fiscal year 2005 to fiscal year 2006, after the home mortgage
business slowed.
The number of home
inspectors also fell 8 percent to 511 – and down 15 percent since
2003. A new law created six years ago requires home inspectors to
carry additional insurance, raising the average cost to $4,500 from
$1,100, which may be partly to blame for the drop in home inspectors.
Similarly, the
number of architects has also fallen 13 percent, but cannot be
directly connected to the lull in the economy. New continuing
education requirements may have discouraged some retirees and
out-of-state architects from renewing their licenses in Massachusetts,
according to industry observers.
Fair Housing: 8
Violations to Avoid
Since April is
Fair Housing month, it’s a good idea to get a refresher on issues
related to the Fair Housing Laws. Keep in mind that even if you don’t
intend to discriminate against a person(s), but a discriminatory
effect does occur, a violation can be proven. So take a few minutes
and read up on
8 Fair Housing Violations to Avoid. They are broken
down into common scenarios with statements that REALTORS® should and
should not use.
Want to Increase
Your Market Share?
A Fannie Mae Foundation study projects that one in five immigrants is
likely to purchase a home, compared to one in eight native-born Americans. To
help REALTORS® stay abreast of this trend, the Greater Boston
Association of REALTORS® is offering At Home with Diversity; a
two-credit continuing education course on April 24 from 8:30 a.m. to
5:00 p.m. It’s aimed at helping you build a more diverse client base
and increasing your sales by learning techniques to effectively deal
with changing demographic patterns. Advanced registration is
required by noon on Friday, April 20. After the course, you will possess
effective strategies to work with immigrants and minorities, have
up-to-date information on the Fair Housing Laws and the power to
create new business relationships.
The course is also
an approved elective for both the Accredited Buyer Representative
(ABR) and the Performance Management Network (PMN) designations. The
cost for the class is $100 for GBAR members.
Click
here for
more information or to register online. To download a registration
form, click
here.
Final Seats
Remaining for Next Week’s CE Classes
Space is still
available for three CE classes being presented on April 23 at the
GBREB offices at 11 Beacon Street in Boston. On that day, courses on
Chapter 93, Consumer Protection & Business Regulation for Brokers &
Salespersons (9 - 11 a.m.), Anti-trust (11:15 a.m. - 1:15 p.m.), and
Alternative Dispute Resolution & Procuring Cause (2 - 4 p.m.) will be
presented, with William Mullen, Esq. instructing the morning classes
and MAR General Counsel Stephen J. Ryan, Esq., facilitating the
afternoon class.
Registration is
$45 per class or $105 for members who attend all three courses
scheduled for the same day. To register, log on to
www.gbar.org or call 617-423-8700. Don’t delay!
Nominations Open
for ROTY Awards
Nominations are
open for Greater Boston’s REALTOR® of the Year and the Andrew F.
Hickey REALTOR® Distinguished Service Award. The deadline to
submit nominations is Friday, May 25th. This year GBAR is
enhancing the program, so keep an eye out for your invitation! The
event will take place in June or July. To download the nomination
form click
here.
Last Chance! Enter
to Win 20% off Coupon toward a GBAR Class
Hurry,
the deadline to complete our survey regarding On the Home Front
is Tuesday, April 24! After completing the five minute survey your
name will be entered to win a 20% off coupon for an upcoming
Continuing Education course now through July 1. Click
here to take the survey!
Dig Deeper into Commercial Real Estate with CCIM
Course
Residential real
estate practitioners who may be looking to expand their business to
serve local commercial real estate property owners and investors may
wish to consider attending the course
Commercial Investment 101
being presented by the
New England CCIM Chapter from May 7-11 at the John Hancock
Conference Center in Boston.
This flagship CCIM
course offers an array of financial analysis concepts and calculations
to help you make sound commercial real estate investment
decisions. You will learn the fundamentals of profitable investing and
apply these concepts to commercial properties. Advanced analyses
covered throughout the course include real estate cash flow model and
time value of money. In addition, you'll learn how to accurately
measure investment value and performance of a given property.
The course is open
to all REALTORS® and qualifies for 3 CCIM Core Course Credits toward
the Certified Commercial
Investment Member (CCIM)
designation and 4 CE credits in Massachusetts
Tuition for
REALTORS® is $1,180 and $1,015 for CCIM Candidates. To
register, call 800-621-7027 or go online to the New England CCIM
Chapter website.
GBAR.org |
