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September 19, 2007
Congress Passes FHA
Reform Legislation
The U.S. House of Representatives and Senate voted this week to pass the
“Building American Homeownership Act of 2007” – legislation aimed at
reforming the Federal Housing Administration’s programs.
The act “will offer home buyers a safer alternative to riskier mortgage
products and will help many homeowners who may be facing foreclosures,”
said NAR President Pat V. Combs in a prepared statement.
Notably, the legislation is co-sponsored by Bay State Congressmen Barney
Frank
(D-Newton) and William Markey (D-Malden) and aims to increase the FHA
loan limits to 125 percent of the local median home price to offset
high-cost areas, such as Boston.
“Increased loan limits will also help people living in high-cost areas,
because low FHA limits currently make FHA-insured mortgages unavailable
to many of these families,” said Combs.
The reform legislation will also:
·
use risk-based
pricing for FHA products;
·
eliminate the three percent downpayment requirement on FHA loans for
first- time homebuyers;
·
increase the number of reverse mortgages the FHA can insure;
·
streamline the FHA condominium loan program;
·
increase the FHA loan limits nationwide and in high-cost areas.
NAR also applauded the FHA’s recent decision to allow subprime borrowers
with a history of good payments and at least three percent equity in
their home to refinance into safer FHA loans. Officials say this will
allow the FHA to guarantee an additional 60,000 refinance loans a year.
NAR Predicts
Decline in Short-Term Home Sales
In its
most recent housing market forecast, the National Association of
REALTORS® reports that the recent tightening in mortgage lending
standards has caused a decline in short-term home sales across the U.S.
and will postpone the expected recovery for existing home sales until
2008.
The unusual disruptions in the mortgage market, specifically the
subprime fallout, will affect home sales mostly in August and September,
according to Lawrence Yun, NAR senior economist.
Existing home sales are projected at 5.92 million this year rising to
6.27 million in 2008, compared with 6.48 million in 2006. Meanwhile,
existing home prices are also likely to slip 1.7 percent to a median of
$218,200 this year before rising 2.2 percent to $223,000 in 2008.
“The volume of existing home sales, however, will still be better than
2002, which was the second year of the housing boom,” said Yun.
New home sales will also be affected totaling 801,000 in 2007 and
741,000 in 2008, a dramatic difference from the 1.05 million in 2006.
Yun attributes part of those numbers to “a sharp production pullback by
homebuilders…[which] is a healthy trend that will help trim down housing
inventory.”
On a local note, GBAR’s market has shown signs of a turnaround of late.
Single family home sales increased in two out of the four regions of
GBAR’s jurisdiction during the second quarter of 2007. Region 2 (North)
increased 5.2 percent and Region 3 (West) had a 6.6 percent increase
over the second quarter of last year.
Sales increased in the condominium market as well. Region 1 increased
by 5.3 percent; Region 2 by 16.1 percent; and Region 4 by 8.9 percent
over the second quarter in 2006. Inventory levels also have declined
steadily over the past year by 16.8 percent in Greater Boston, which has
helped to stabilize home prices in many communities.
Ginne Mae Eliminates VA Loan
Cap
The
Government
National Mortgage Association, known as Ginnie Mae, announced
it will eliminate its $417,000 cap on the Veterans Administration (VA)
loans it will guarantee beginning this month.
"We expect this change will expand the availability of low-cost
financing and increase homeownership opportunities for America's
veterans, particularly in high cost areas, by encouraging lenders to
make more VA loans," said Michael J. Frenz, executive vice president of
Ginnie Mae.
Ginnie Mae still requires that the down payment, plus the amount of the
VA guaranty, equal at least 25 percent of the value of the home.
Milford
Firm Raises More than $50K for Charity
ERA Key
Realty Services in Milford was named the top ERA fundraiser nationwide
for this year’s Muscular Dystrophy Association (MDA) bringing in
$52,000. The firm’s broker-owner and GBAR director, Bruce Taylor, says
85 percent of the funds raised came from an interest-bearing escrow
account that buyers and sellers agree to place money into.
In honor of the firm’s status as the largest fundraiser, Sales Manager
Nelson Zide of Framingham and Michael Seaver of Westborough traveled to
Las Vegas to attend the MDA’s Labor Day telethon where they presented
the MDA with a $1 million check.
The fundraising efforts at ERA are ongoing and Taylor is hoping to raise
just as much next year. The firm also has its own charitable trust,
which more than 220 agents participate in. This year they donated more
than $40,000 to various organizations.
Congratulations!
Nationally-recognized Technology Expert to Present at GBAR Courses
Technology
expert Matthew Ferrara, CEO of Matthew Ferrara Seminars, Inc. will
instruct two upcoming GBAR technology courses.
Ferrara’s first class –
Make Technology Work for You – is being held on September
25 at the Natick Courtyard Marriott from 10:00 – 1:00 p.m. Two
continuing education credits can be earned as well. Participants will
learn about Going Mobile, Contact Management; Digital and Wireless Tools
and more. Cost for the program is $150.
On October 25 Ferrara will present his exclusive
Ultimate Technology Certification Course at Regis College
in Weston from 9:30 a.m. – 4:00 p.m.
The course contains the “best of the best” techniques on using
technology for prospecting, listing presentations, direct marketing and
multimedia advertising. You’ll learn about Prospecting on the Web,
Enhancing Listing Presentations and Tapping into Text Messaging. Early
bird registration price is $275 before October 1 and $299 afterward.
Don’t miss these exciting opportunities – we’ll see you there!
Ferrara is also featured in this month’s Bay State REALTOR® magazine,
which can be viewed on the Massachusetts
Association of REALTORS® website.
Join GBAR at the Annual Real Estate Cyber Strategy Conference
Join fellow REALTORS® for a practical, down-to-earth training session
which will prepare you to multiply your income by using the new
cyberspace tools available today. This one-day program featuring John
Peckham III is being offered by the Real Estate CyberSpace Society and
co-sponsored by GBAR and other REALTOR® boards throughout New England.
The program will be held on Wednesday, October 3 from 9:00 a.m. to 4:00
p.m. at the Massachusetts Association of REALTORS® in Waltham. Member
pricing is $75 up until September 26 after which the cost increases to
$95.
Participants will learn how to:
-
set up a custom
marketing plan
-
get incredible,
almost instantaneous responses
-
master the selling
power of e-mail
-
network quickly and
inexpensively
-
build and keep a
cyberspace clientele
To register for the program visit
http://www.REcyber.com/bostonseminar or call 888-344-0027.
Early Bird Registration Deadline Extended for 2007 MAR Conference
Time is
running out to register for the 2007
Massachusetts Association of
REALTORS® Conference and Tradeshow on October 10-11 at the
Rhode Island Convention Center in nearby Providence, RI.
The $149 early bird registration deadline has been extended until
October 1. You can register via MAR’s Customer Service line or the
Internet. Only on-site registration will be available after October 2
at a rate of $179 for members and $199 for non-members.
Participants can receive up to 12 continuing education credits – the
amount required to renew your real estate license. Nationally
recognized speakers will also be appearing such as Mark Lesswing of the
NAR Center of Real Estate Technology and Dan Thurmon, president of
Motivation Works, Inc.
For more information visit
http://www.marconvention.com or call customer service at
800-725-6272.
Explore the
Possibilities of 1031 Exchanges
Would you
like to complete 5-10 more transactions a year? What about having the
ability to create business anytime you want? Then you should consider
attending a course being offered by
AllStates 1031 Exchange
– Using the Power of 1031 Tax-Deferred Exchanges.
Participants of the two-hour program will learn what a 1031 exchange is
and how it works; how to use 1031 exchanges to create new listings and
create more sales; and how to generate an additional stream of income by
following a few simple steps.
Several dates are scheduled with the earliest being Wednesday, September
27 in Waltham. Cost for the program is only $25. To register for the
program visit
www.spartasuccess.com or call (508) 243-6257.
MAR to Offer CRB Course
The
Massachusetts Association of REALTORS® will be offering a three-credit
course toward the Certified Real Estate Brokerage Manager (CRB)
designation on October 16-17 in Waltham. The program is designed for
brokers and company owners and managers who motivate, coach and counsel
a sales team.
The two-day course will be taught by Rex Fithian. Participants can
expect to learn how to:
-
Identify your
personal management style;
-
Strengthen
manager/agent interaction;
-
Apply situation
leadership;
-
Create a strategy
to optimize management effectiveness;
-
Assess performance
and growth potential in your sales team.
Program fees are as follows: $545 for CRB candidates; $285 for CRB
Designees and $725 for non-members. To register visit
www.marealtor.com, or call Gail Cronin at 800-725-6272.
Upcoming GBAR Courses
10:00 a.m. – 1:00
p.m. at the Natick Courtyard Marriott
Matthew Ferrara
trains senior management and agents on how to implement competitive
technology practices into businesses. No matter what your technology
level is, Ferrara will make technology work for you!
Cost: $150.
Brand new
ABR Elective!
(2 CE credits & ABR Elective credit)
8:30 a.m. – 3:30 p.m. at Regis College –
1st time offered in this area!
This class will help
REALTORS® understand:
-
The process of
foreclosure and how it occurs;
-
Counseling
buyer-clients to help them avoid foreclosure proceedings;
-
Working with
bank-owned real estate in pre- and post-foreclosure.
Cost: $175
Greater Boston Real Estate Board – Boston
9:30 – 11:30 a.m. – Lead Law (taught by Joe Stallone)
11:45 a.m. – 1:45 p.m. – Commercial Basics (taught by Rob
Nahigian)
2:45 – 4:45 p.m. – Commercial Leasing (taught by Rob
Nahigian)
Cost: $45 single
class/$105 all day
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