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January 16, 2007
Senate Passes FHA
Reform Bill
In a 93-1 vote last month, the U.S. Senate passed the FHA Modernization
Act of 2007. The legislation would increase loan limits (including
those for high-cost areas such as Boston), reduce or eliminate the
statutory three percent minimum cash down payment, strengthen the loss
mitigation program, and give the FHA flexibility to streamline certain
programs.
"A reformed FHA is positioned to help homeowners who face unaffordable
mortgage payments as a result of resetting adjustable subprime loans and
help bring stability to local markets and economies," said NAR President
Richard Gaylord.
The U.S. House previously passed its own version of the bill titled the
Expanding American Homeownership Act of 2007. A conference committee
with members of the U.S. Senate and House will be appointed to reconcile
the differences. The National Association of REALTORS® has submitted a
letter to the House Committee on Financial Services and the Senate
Committee on Banking, Housing and Urban Affairs urging quick resolution
to the differences in legislation.
40B Repeal Won't Be
on 2008 Ballot
Proponents of an initiative to repeal Chapter 40B failed to acquire the
66,593 signatures needed to put the question on the November 2008 state
ballot. Only 33,849 signatures were certified by the Massachusetts
Secretary of State William Galvin's office last month.
The state's comprehensive permit law, otherwise known as Chapter 40B,
passed in 1969, provides mixed-income housing in communities where less
than 10 percent of housing is affordable to lower-income families. The
Greater Boston Real Estate Board strongly supports Chapter 40B as an
effective regulatory tool that has been critical to the production of
affordable housing and the expansion in the supply of market rate
housing across the Commonwealth. Since its enactment, nearly 900
developments with over 48,000 units of housing have been created –
including church-sponsored housing for the elderly and multifamily
rental housing developments.
GBREB would like to thank all of its members who rallied in defense of
this important issue. GBREB will continue to aggressively oppose any
effort to repeal Chapter 40B. The next opportunity for this issue to
reappear on the ballot would be in 2010.
WaMu Closes its Doors
in Massachusetts
Washington Mutual, Inc. - one of the nation's 10 largest mortgage
lenders - has announced it will be closing all seven of its offices in
the Bay State. Massachusetts residents can still borrow from WaMu
by contacting the company directly. The closest office is now in
Connecticut.
In December of last year the company announced 190 out of its 336
mortgage offices will close nationwide and that it will stop making
subprime loans.
IndyMac Bank based in California has also suspended almost all of its
lending in the Bay State. Its new mortgage loans made up 1.6 percent of
those made in Massachusetts last year. A small New Jersey firm, Freedom
Mortgage, will also be leaving the Bay State this month.
On a similar note, the Massachusetts Division of Banks has joined a
network currently comprised of six states to track the licensing of
mortgage loan originators, including mortgage brokers and loan officers
at banks.
The Nationwide Mortgage Licensing System (NMLS) launched last week and
will prevent loan originators banned in one state from working in
another state. The system will allow the Massachusetts Division of Banks to
license and supervise more than 2,000 loan originators. Consumers will
have access to the data sometime in the future.
Idaho, Iowa, Kentucky, Nebraska, New York and Rhode Island are
already participating in the NMLS with 40 other states indicating intent
to join.
President Bush Signs
Legislation to Eliminate Phantom Tax
President Bush signed legislation into law last month that the National
Association of REALTORS® has been supporting since the 1990s. The
Mortgage Forgiveness Debt Relief Act of 2007 eliminates the phantom tax
that homeowners face when they have debt forgiven on a foreclosure,
short sale or deed in lieu of foreclosure.
Taxes will be waived by creating a three-year exception for borrowers
whose mortgages are modified, with a portion of their debt forgiven, to
avoid foreclosure or other financial distress.
Prior to this legislation, the tax code required a lender who forgives
debt to provide a Form 1099 to the Internal Revenue Service detailing
the amount forgiven. If the property was sold at foreclosure or less
than what was borrowed, the difference was considered taxable income
(commonly referred to as a phantom tax).
New Version of
e-Forms Available
As of last month, GBAR members and other users of e-Forms have access to
the latest version of e-Forms provided by Instanet.
GBAR members will
have access to both the existing version of the software that they have
been using since 2002, as well as the updated, enhanced version of the
e-Forms operating platform. Members may use either version, as content
entered into one version should automatically populate in the other.
There is no additional cost to access the new version of the platform.
Please note that in many circumstances the latest version of e-Forms
will require you to upgrade to Adobe Reader version 8.0, which is free
and can be done
online.
InstaNet will be
offering tutorial webinars for the newest version of e-Forms:
January 22 – 1:00 -2:00 P.M. -
Introduction to the new e-Forms Webinar for Agents
January 29 – 1:00 -2:00 P.M. -
Introduction to the new e-Forms Webinar for Agents
This webinar will
cover the initial usage of the software including topics such as:
creating and working with the Greater Boston Real Estate Board contracts
and forms, MLS-Pin auto-population of contracts and transactions, and
sending and receiving faxes from within e-Forms.
January 18 – 2:00 – 3:00 P.M. –
Introduction to the new e-Forms for Brokers/Administrators
January 25 – 2:00 – 3:00 P.M. –
Introduction to the new e-Forms for Brokers/Administrators
This webinar will
explain how to use the newest version of e-Forms to help a brokerage
monitor, maintain and manage contracts, forms and transactions created
by agents.
If you have any
questions, you can call Instanet at 1-800-668-8768.
NAR Chief Economist
to Speak at GBAR's Mortgage Outlook Seminar
The turmoil caused by the subprime mortgage crisis and the sharp rise in
foreclosures during the past year have created both challenges and
opportunities in today's housing market. Buyers and sellers need
guidance, and they will be turning to you for information, insight and
counsel on how to properly proceed with their home purchase or sale this
spring.
To better understand these issues, we invite you to attend
Outlook for the Mortgage Market & Spring Home Buying Season, a
half-day seminar being presented by the Greater Boston Association of
REALTORS® on February 4, from 9 a.m. to 1 p.m., at the Hampton Inn, 319
Speen Street in Natick.
This informative session, which is worth two continuing education
credits, will feature:
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A forecast for the
2008 housing market by National Association of REALTORS® Chief
Economist Lawrence Yun, with important data and analysis on the market
you can share with clients and customers;
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A discussion of new
financing standards and procedures that mortgage lenders have
implemented as part of the loan application and approval processes;
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A summary of
pending changes from Fannie Mae and Freddie Mac that will affect the
rates and points consumers pay for loans this spring;
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An overview of the
FHA Secure program and other programs available to assist homeowners
who may be at risk of foreclosure;
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A presentation of
the legal issues REALTORS® need to be aware of when working with short
sales or foreclosed properties to limit liability and protect the
commission.
Registration is $25 if received by January 28, and $35 less than one
week prior to the program. Seating is limited, so register early. Call
the GBAR Education Department at 617-423-8700 or register online at
gbar.org.
Upcoming GBAR Classes
January 17 – (Earn up to 6 CEUs)
Courtyard Marriott Natick - 342 Speen Street – Natick
9:30 – 11:30 A.M. – Seller Agency
11:45 A.M. – 1:45 P.M. – Conducting an Open House & Developing a Safety
Plan
2:45 – 4:45 – National Economic Trends
January 31 – (Earn up to 6 CEUs)
Regis College
– 235 Wellesley Street – Weston
9:30 – 11:30 A.M. – Foreclosures/Short Sales
11:45 A.M. – 1:45 P.M. – Understanding Title & Concerns
2:45 – 4:45 P.M. – Buyer Agency
February 7 – Quadrennial Ethics Training
John Joseph Moakley U.S. Courthouse – 1 Courthouse Way – Boston
10:00 A.M. – 12:30 P.M.
As a condition of
your membership in the REALTOR® organization, you must complete 2 ½
hours of ethics training every four years. If you have not received this
training during the current four-year cycle, you have until December 31,
2008 to receive this training in the classroom or online. Visit
gbar.org for
further details.
Cost: $30 two weeks prior to program, $45 regular registration
February 19 – (Earn up to 6 CEUs)
Greater Boston Real Estate Board – 11 Beacon Street – Boston
9:00 – 11:00 A.M. – 21 E. Brownfield
11:15 A.M. – 1:15 P.M. – Evolution of the Commercial Product
2:15 – 4:15 P.M. – Title 5
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