July 26, 2007

GBREB Opposes Rent Control Proposal at Public Hearing
Last week, a public hearing was held by the Boston City Council regarding a tenant "collective bargaining" initiative proposed by City Councilor Sam Yoon. Greater Boston Real Estate Board CEO Greg Vasil was present at the hearing, along with Chris Reilly, president-elect of GBREB's Rental Housing Association. Both spoke out against the proposal, which GBREB opposes as an attempt to re-introduce rent control in Boston.

Specifically, the proposal, if passed, would require building owners with 10 or more units (20 if the building owner lives in the city) to negotiate with tenant groups over rent increases, code violations, evictions, etc. Owners would also be prohibited from selling or converting a building to condominiums without first negotiating with the tenant group.

Notably, more than 50 REALTORS® participated in a GBREB Call-to-Action on this issue and sent letters to their city councilor prior to the hearing urging opposition to the collective bargaining proposal. That direct contact from real estate professionals who also happen to be constituents of city councilors, appears to have had an impact as many councilors said they had received calls from GBREB members urging defeat of the measure. A formal vote could come as early as next week. We’ll keep you updated on this issue in future editions of On the Home Front.

Nominations for 2008 GBAR Officers and Directors Due July 30
Are you a born leader? Would you like to play a more active role in setting the direction of the REALTOR® organization on the local or state level? Do you believe in giving back to the profession you belong to? If you answered "yes" to any of these questions, we invite you to submit a nomination to become an officer or director of the Greater Boston Association of REALTORS® or director from GBAR to the Massachusetts Association of REALTORS®.

The deadline to submit applications to the GBAR Nominating Committee has been extended until July 30. Nominations of all candidates meeting the qualifications of the office or position they seek to hold in 2008 will be carefully considered by the Nominating Committee later this summer, with a formal slate to be noticed to the general membership in September and subsequently presented to the GBAR Board of Directors for vote in October.

For more information or to download the GBAR Officer & Director Nomination packet visit www.gbar.org.

Governor Unveils $250M Foreclosure Fund
Earlier this month, Massachusetts Governor Deval Patrick unveiled a $250 million fund aimed at helping residents facing foreclosure by refinancing their loans into more affordable ones.

The Massachusetts Housing Finance Agency (MassHousing) will provide the financing along with Fannie Mae, a federal agency that invests in mortgages.

Subprime borrowers who are behind on their monthly payments by 60 days or less are eligible to refinance into 30-year mortgages with a fixed rate of 7.75 percent. Approximately 1,000 Bay State residents’ loans will be refinanced because of the program.

The program does have income limits. Qualified Boston residents can earn up to 135 percent of the median household income ($108,000). The limit in the rest of the state is 125 percent of the median income ($98,000). MassHousing will refinance single family homes up to $417,000 and three-family homes up to $645,600.

Borrowers who used subprime mortgages to refinance their home to cash out its equity are not eligible for the program.

The program has received criticism, however, because of state officials’ insistence on forcing lenders to accept the losses on loans when the property value has decreased since the loan was first made. For example, if a subprime borrower purchased a home with a $300,000 loan and now the home is worth $275,000, the lender would take a $25,000 loss. The state would refinance the $275,000.

Some say this is the best option for lenders, who understand that if a house goes into the foreclosure it’s worth much less.

To apply for financing, borrowers must call NeighborWorks America at 888-995-4673.

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On a similiar note, NeighborWorks America and the Federal Deposit Insurance Corp (FDIC) have teamed up to lead an effort to identify homeowners at risk of foreclosure and to increase lender support for foreclosure intervention in nine regions across the country, including Boston.

The partnership will promote awareness of foreclosure schemes and deceptive advertising practices; encourage loan workouts to avoid foreclosure; promote better intervention practices for consumers who still qualify for flexible financing; and expand support for the NeighborWorks Center for Foreclosure Solutions – a national partnership between the financial, mortgage, insurance and nonprofit sectors.

Meanwhile, 2,200 Bay State residents facing foreclosure will get a reprieve after California-based Fremont Investment and Loan agreed to a 90-day moratorium on foreclosure proceedings.

In mandating the moratorium, Massachusetts Attorney General Martha Coakley said the 90 days will be used to review all transactions, which the loan company will pay for. Coakley has previously warned Fremont, whose shares have fallen 33 percent this year due to deceptive practices aimed at subprime borrowers. The company has since exited the subprime mortgage business.

Coakley insists the company violated state consumer protection laws by failing to report borrowers’ income, completely disclose loan terms, or take borrowers’ repayment ability into account.

Consumers Can Receive Their Share of $325M Settlement
Forms were sent to consumers this month allowing them to claim a share of a $325 million lawsuit settlement against Ameriquest Mortgage and its related companies. Consumers from 49 states (excluding Virginia) were mailed the forms.

The settlement involves Ameriquest Town and Country Credit Corp. and AMC Mortgage Services, Inc. formerly known as Bedford Home Loans. The companies are accused of improperly disclosing home loan terms, inflating appraisals, refinancing borrowers into inappropriate loans and charging excessive loan origination fees and prepayment penalties from 1999-2005.

The average restitution payment is estimated at $812.15, which could increase depending on the number of consumers who participate in the settlement.

Consumers who accept the restitution payment give up their right to sue Ameriquest unless their home goes into foreclosure, at which point they can file a lawsuit regardless if payment was accepted.

Have You Completed Your 2 1/2 Hours of Quadrennial Ethics Training?
Between January 1, 2005 and December 31, 2008, every REALTOR® is required to complete 2 1/2 hours of Quadrennial Ethics Training in order to retain active membership in the REALTOR® organization. Failure to comply with this requirement will result in a suspension of membership from the REALTOR® organization and the Greater Boston Real Estate Board.

Members are urged to avoid waiting until next year to complete this training, as enrollment in courses could become more difficult as the deadline for meeting this requirement approaches. Instead, we encourage you to consider attending one of the very first Quadrennial Ethics Training classes that GBAR will be presenting over the next 18 months. These include sessions on Monday, September 17, at the Greater Boston Real Estate Board offices in Boston and Thursday, September 20 at Regis College in Wellesley. Notably, members can also take the online ethics course offered by NAR, which is free and available 24 hours a day. REALTORS® can stop and restart the course at their convenience within a 30-day time period. Successful completion is recorded in the National REALTORS® Database System (NRDS). Check gbar.org for updates on upcoming live classroom courses.

As a reminder, those members who have joined the REALTOR® organization since January 2005 and completed the new member orientation program presented by the Greater Boston Association of REALTORS® should be aware that they have already satisfied the ethics requirement by virtue of your attendance at the orientation session. Existing members who are unsure of whether or not they have completed the necessary training should call GBAR at 617-423-8700.

Win $500 by Completing Cost vs. Value Survey
REALTOR® Magazine is looking for brokers, salespeople, and appraisers located in one of 60 targeted metro areas (including several in New England) to complete the 2007 Cost vs. Value survey. Those who complete the survey by midnight on August 31 will be entered into a drawing for one of three $500 prizes. The survey is used to produce the popular Cost vs. Value Report, which runs in REALTOR® Magazine each December. The report, which is produced in cooperation with Remodeling magazine, compares the cost to construct popular remodeling projects with the amount recouped at resale. Member participation is critical to the success of this industry benchmark. Click here to access the survey.

Questions? E-mail cost-value@hanley-wood.com; or send a fax to Sal Alfano, editor of Remodeling Magazine, 202-985-1974.

Donations Sought by Uxbridge Realty Firm Gutted by Fire
On July 21, the RE/MAX American Dream office located in the Bernat Mill Complex in Uxbridge, MA was destroyed by a devastating fire that consumed most of the building. The office, which is owned and operated by Designated REALTOR® Susan Joseph and co-owners Richard and Sheila Champagne and has 13 agents, was completely gutted and no material items are expected to be recovered from the debris. Although the owners do have insurance, we understand it will fall short of the amount needed to fully recover and rebuild. The spirit and will of the owners remains strong however, and the office is actually handling some business this week. If you would like to assist the office with a donation of unused or spare office furniture, equipment, etc., please contact RE/MAX American Dream at (508) 278-4663.

ABR Designation Course to be Offered at GBREB
This August, GBAR will present the popular Accredited Buyer Representative (ABR) designation course and a one-day elective for those members interested in receiving comprehensive training in buyer representation. If you want to become educated on how to provide the same level of service and fidelity to buyers that sellers have come to enjoy, then you’ll want to attend these classes to earn your ABR designation, which happens to be the only buyer representative designation recognized by the National Association of REALTORS®.

The two-day ABR course examines agency theory and practice, standards of care in the delivery of buyer agent representation, and strategies to target niche markets and build your buyer representation business. In addition, attendees will receive instruction on how to successfully handle offers and negotiations as a buyer agent, and learn about disclosure requirements, vicarious liability and other risk management issues. Meanwhile, the one-day elective class – “Effective Negotiating for Real Estate Professionals” will teach agents how to gain a strong competitive advantage in securing agreements by negotiating in a more powerful and productive way.

The ABR course will be offered on August 6-7, with the elective scheduled for August 8. Both courses will be held on the campus of Regis College in Wellesley. Registration fees for GBAR members are $300 for the ABR course and $175 for the one-day Negotiation elective or enroll in both programs for just $400. For more information or to register, call Kristin Langone at 617-399-7851 or go online to www.gbar.org.

Learn the Real Estate Basics with GBAR’s Tools and Rules
Earn up to six continuing education credits on August 28 with the program "Tools and Rules for Your Success in Real Estate." The program will be held at the Greater Boston Real Estate Board at 11 Beacon Street in Boston. The following is the day’s schedule:

9:00 - 9:30 a.m. Registration
9:30 – 11:30 a.m. Offers
11:45 a.m. – 1:45 p.m. Commonly Used Forms: Mandatory/Optional
1:45 - 2:45 p.m. Lunch Break
2:45 – 4:45 p.m. Fair Housing

Member cost for all three modules is $165 or $45 for a single class. You can register for the program online or by faxing in a registration form. For further questions contact Kristin Langone at (617) 399-7851.
 

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