{RE}source | April 2010

i. 4 / vol. III

April

2010

Monthly Newsletter of the San Mateo County Association of REALTORS®

www.samcar.org

in this issue...

April is . . .

Fair Housing

SAMCAR Message from the President page 1 SAMCAR Announcements page 2 C.A.R. President Steve Goddard at March Combined Meeting pages 3 & 4

Month

SAMCAR’s Got Talent! pages 7 & 8

pages 5 and 6

Superintendent at South Tour page 8 Affiliate Update page 8 Education at SAMCAR page 10

Legislative C.A.R. Vice President an

June Barlow

d General Counsel

To speak at April 6 Combined Meeting page 1

CALHFA Announces $700M to assist homeowners page 3 REALTOR® Action Fund page 3

NAR NAR Updates page 4

CAR CAR Updates page 3

MLS MLSListings, Inc. Updates page 8

Message from your 2010 President

monthly newsletter of the

San Mateo County Association of realtors®

Jennifer F. Tasto

2010 SAMCAR President

www.samcar.org tel. (650) 696-8200 fax (650) 342-7509 Board of Directors 2010 President President Elect Region 25 Chair Director Director Director Director Director Director Director Director Director Affiliate Director Director Director

Jennifer Tasto Susan Vaterlaus Olivia T. Edwards Eric Berggren Robert Brisbane John Clifford Bobbi Decker Suzan Getchell-Wallace Phillip Houston Karon Knox Anne Oliva Dennis Pantano Edgar Tulcanaza Diane Wilson David Zigal

April is Fair Housing Month!

S

pring is here and April 2010 marks the 42nd Anniversary of the 1968 landmark Fair Housing Act. The National Association of REALTORS® embraces our country’s racial and ethnic diversity and strives to make the benefits of real property ownership available to all people in the nation.

What makes the Bay Area such a wonderful place to reside? I hear from people that weather and convenience are important reasons why they choose to live here. However, people also talk about the diversity of the Bay Area. The racial, ethnic and socio-economic diversity contribute to an interesting and synergistic outcome in all that we do, and where we work, play, and live.

The 2000 U.S. Census reports that American is more culturally diverse than any other time in the nation’s history. I dare say the 2010 census would ref lect that fact even more so. And what do we do about that as real estate practitioners? We can recognize the differences and celebrate them.

Michon Coleman Director of Government Affairs Dalen Gilbrech Publications Designer

I am an “At Home with Diversity” instructor through the National Association of REALTORS®. I encourage you to pursue this certification, as it has been specifically designed for the real estate practitioner with the goal to help you increase your sensitivity and adaptability to future market trends that can affect bottom line profitability.

Our Vision The Voice for Real Estate Professionals and Property Owners in San Mateo County.

We, as REALTORS® can reconfirm our commitment to offer equal professional service to all in their search for the American Dream.

Editorial Team

Yes, we can make a difference!

please join us at the April Combined Meeting SAMCAR {RE}source is published monthly by the San Mateo County Association of REALTORS®, 850 Woodside Way, San Mateo, CA 94401 and distributed to more than 4,000 recipients. E-mail samcar@samcar.org your questions or comments.

Copyright © 2010

C.A.R. Vice President June Barlow To Speak at April Combined Tour C.A.R. Vice President and General Counsel June Barlow will be speaking at the April 6th combined meeting at the Elks Lodge, 229 W. 20th Avenue in San Mateo. Please join us for this informative presentation.

SAMCAR April Combined Tour Meeting Tuesday, April 6, 2010 | doors open at 8 a.m., meeting begins 8:30 a.m.

Elks Lodge, 229 W. 20th Avenue, San Mateo

Be a part of Your Association

April 2010

Welcome New Members

San Mateo County Association of realtors® YOUR Voice , YOUR Association

First REALTOR® Nationwide Open House Weekend: April 10-11, 2010 During the weekend of April 10th through 11th the

San Mateo County Association of REALTORS® and REALTOR® associations across the country are taking part in this first of its kind event to promote open houses nationwide. The goal is to encourage those who are thinking of buying a home to take advantage of low interest rates, lower home prices, the Federal home buyer tax credit that expires on April 30th and the California state tax credit that will be in effect from May 1st through December 30th, 2010.

First, we are asking that our members promote their open houses on the MLS. And, to help promote your open house and let the public know this is a coordinated effort, SAMCAR is offering our members FREE REALTOR® Balloons (first come, first served) for you to tie to your open house signs. The balloons will be available at the Combined Tour meeting and at SAMCAR after April 6th (agents are responsible for filling the balloons). Please pick up your balloons by Friday, April 9th.

The following members joined in March 2010

Realtors® Salvador Castillo, Coldwell Banker Angel Rafael Chavez, Prudential California Charlie Crites, Prudential California Domenico Di Martino, Exit Realty, WEM & Associates Anna Estevez, Heritage Realty Alicia Fortaleza, Prudential California Mary Gallagher, ZipRealty, Inc. Andrew James Greenman, Alain Pinel Realtors Felix Kuan, Prudential California S Onder Kustu, Boomerese Realty

$18,000 in Combined Homebuyer Tax Credits for a Limited Time Californians have a brief window of opportunity to receive up to $18,000 in combined federal and state homebuyer tax credits. To take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010, inclusive. Buyers who are not first-time homebuyers may use the same timeframes to receive up to $16,500 in combined tax credits if they are long-time residents of their existing homes as permitted under federal law, and they purchase properties that have never been previously occupied as provided under California law.

Under the federal law slated to soon expire, a firsttime homebuyer may receive up to $8,000 in tax credits, and a long-time resident may receive up to

$6,500, for certain purchase contracts entered into

by April 30, 2010 that close escrow by June 30, 2010.

Additionally, under a newly enacted California law, a homebuyer may receive up to $10,000 in tax credits as a first-time homebuyer or buyer of a property that has never been occupied. The new California law applies to certain purchases that close escrow on or after May 1, 2010 (see Cal. Rev. & Tax Code section 17059.1(a)(4)). California law generally allows buyers of never-occupied properties to reserve their credits before closing escrow, but buyers seeking to combine the federal and state tax credits will not be able to satisfy the timing requirements for such reservations (see Cal. Rev. & Tax Code section 17059.1(c)(1)(A)). Other terms and restrictions apply to both tax credits.

Homebuyer Tax Credit Chart with side-by-side summary of the federal and California laws:

http://takeaction.realtoractioncenter.com/ct/IpAN8k71rT3o REALTOR® Magazine’s Good Neighbor Awards

The Good Neighbor Awards recognize REALTORS® who’ve made an extraordinary commitment to improving the quality of life in their communities through volunteer work. Five winners each year receive $10,000 grants for their cause.

Application deadline: May 21, 2010. For more information visit:

www.realtor.org/gna

Sales statistic reports are available on samcar.org

Every month SAMCAR formats data compiled by MLSListings Inc. into PDF sales statistic reports for Single Family Residences and Common Interest Developments in San Mateo County including sales price, average days on market, median price and more.

To view monthly Sale Statistic reports online at

www.samcar.org/stats

2

Steve Leydiker, Prudential California Jose L. Monar, Reliance Realty Group Kyle Muteff, ZipRealty, Inc. Tom Pozdro, Prudential California Joctan Ramon, Prudential California Max W. Reinhardt, Intero Real Estate Services Brandie Riley, Coldwell Banker Cecily Taylor, Girouard Properties Rosalinda Ramirez Weed, Casa Latino Bay Area Realty

Affiliates Debi D’Arcy, American Home Shield Joe Ganeff, X-change Solutions Inc. Beckie Patane, Trowbridge Insurance Elmer Velasco, Farmers Insurance

3

Government Affairs

April 2010

Now it’s even easier to make your contribution to the

CALHFA Announces $700 Million To

Assist Homeowners

T

he U.S. Treasury has allocated $699.6 million to CalHFA to help low and moderate income borrowers who have been hit hardest by unemployment and falling home values. These funds will be used for innovative programs to help stabilize the housing market.

C.A.R. offers investment plan Contributions to the REALTOR® Action Fund can be made using a C.A.R. investment plan for as little as $4.08 per month.

Download the rubric explaining C.A.R.’s payment plan at:

www.samcar.org/RAF

The HFA Hardest-Hit Fund was designed to allow the maximum possible flexibility to Housing Finance Agencies in designing locally-focused programs that address the needs of a specific state or region within a state. All programs must have foreclosure prevention and housing market stability as their primary objectives.

CalHFA’s proposal, along with proposals from the four other states selected (Arizona, Nevada, Florida and Michigan) is due by April 16, 2010. The Treasury will then review each proposal for compliance with program objectives and other requirements. The Treasury expects that CalHFA may be in the position to begin drawing down funds within four to six weeks following submission of proposals, or mid-year.

More info: http://www.calhfa.ca.gov/about/publications/press-releases/

YOU FIGHT FOR YOUR CLIENTS.

WE FIGHT FOR YOU.

Please contribute to the REALTOR® Action Fund today!

CAR Update

C.A.R.’s 2010 Legislative Update Watch C.A.R.’s Chief Lobbyist, Alex Creel, summarize key legislation and issues that affect REALTORS® and discuss the importance of investing in the REALTOR® Action Fund. http://videos.car.org/mediavault.html?menuID=3&flvID=4

news from Combined Tour

C.A.R President

Steve Goddard Delivers Important Update Contributed by Julie Ziemelis

SAMCAR President, Jennifer Tasto

provided a treat to the membership at the March combined meeting by inviting C.A.R. President, Steve Goddard to provide a C.A.R. update to a full house.

Mr. Goddard is a broker and manager at RE/MAX Marquee Partners in Manhattan Beach, Calif. He began selling real estate 35 years ago, specializing in selling and leasing residential real estate, residential income properties, commercial buildings, and leasing. As President of C.A.R., which now has nearly 162,000 REALTOR® members, one of Goddard’s goals is to shed light on housing-related issues, including the rights of private-property owners, and housing affordability at the local, state, and national levels.

Mr. Goddard opened the meeting with a housing market update. He stressed that short sales and foreclosures are far from being over and in fact, will continue to make up a large portion of the inventory in California during the next two years. He encouraged the audience to seek out education in working with this segment of the market.

The REALTOR Action Fund (RAF) is another hot topic for Mr. Goddard.

He pointed out the following victories: PRESERVED: Property Profiles: Title insurance companies stopped providing property profiles in a reaction to a letter issued by the Department of Insurance.

DEFEATED: 3% Independent Contractor Withholding: (Defeated 3 times in 2009!) Politicians proposed an acceleration of income tax payments in the form 3% withholding.

DEFEATED: Point of Sale Bills: Multiple bills were introduced which, if passed, would have resulted in as much as $20,000 of costs per home to close escrow.

Mr. Goddard stressed that given California’s ongoing state budget shortfall, 2010 will be another contentious year. He encouraged the members to continue their support of the RAF to preserve C.A.R.’s ability to fight for your right to do business and continued financial

NAR UPDATES

April 2010

4

NAR Responds to Use of BPOs in NAR Submits Written Statement on Residential

HAFA Program

Energy Efficiency Proposal

O

N

n March 12, 2010, Vicki Cox Golder, the 2010 President of the National Association of REALTORS, sent a letter to Treasury Secretary Geithner and Housing and Urban Development (HUD) Secretary Donovan supporting the use of broker price opinions (BPO) in the Home Affordable Foreclosure Alternatives (HAFA) program.

The letter was, in part, a response to an Appraisal Institute letter to Treasury that said BPOs may exacerbate mortgage fraud and that real estate agents have a bias towards quick results that produce a fee without respect to other stakeholders in the real estate transaction.

In the letter NAR recognizes the need for flexibility in any mortgage modification program and notes the importance of the appraisal for purchase money mortgage transactions. However, an appraisal may not be the best tool for other real estate transactions. BPOs are widely accepted in the real estate industry and there is no evidence that their use results in mortgage fraud. NAR also argues that there is no evidence to support the idea that appraisers are more or less likely to engage in mortgage fraud than real estate agents. In fact, all members of NAR must adhere to a strict code of ethics.

NAR also has concerns with the assertion that at least twenty-three states limit BPO use to assisting buyers or sellers in establishing a listing or offering price for a property are simply incorrect. In the letter, NAR encourages Treasury and HUD to examine the relevant state statutes prior to accepting that argument at face value as we believe the use of BPOs for short sale and other purposes is clearly permissible in most, if not all, states.

AR recently submitted a written statement to the Senate Committee on Energy and Natural Resources expressing NAR’s perspectives on a proposal to offer homeowners tax rebates to voluntarily make energy efficiency improvements to their home. NAR also used the statement as an opportunity to express our concerns regarding creation of a home energy performance label as part of the Recovery Through Retrofit Initiative currently being implemented by the Obama Administration.

The draft legislation - the Home Star Act of 2010 - would offer homeowners up to $3,000 for Silver Star Tier upgrades such as adding insulation, duct sealing, and installing energy-efficient water heaters. The Gold Star Tier would offer larger rebates for whole-home energy audits and make subsequent retrofits that achieve 20 percent energy savings, with additional incentives for energy savings that exceed 20 percent.

While NAR supports voluntary, financial incentives to residential energy efficiency improvements, NAR’s statement proposed several improvements that, if adopted, would make the Home Star approach more workable, including: (1) extending the program to commercial properties; (2) limiting the broad regulatory authority given to the Secretary of Energy; and (3) streamlining the bureaucratic process for obtaining the rebate while protecting consumer information.

NAR will continue to work with Congress to express our perspectives regarding the Home Star proposal and our concerns regarding the Recovery Through Retrofit Initiative.

news from Combined Tour

support is needed now more than ever.

Goddard reminded the group that there are going to be significant changes to the California Residential Purchase Agreement and Joint Escrow Instructions–most often referred to as the “RPA”. The RPA hasn’t been significantly modified since 2002, and the changes approved followed nearly two years of effort by the RPA Study Group and the Standard Forms Advisory Committee. Changes regarding the initial deposit; the notice to perform; FHA/VA loans; financing; the appraisal contingency; the wood pest inspection; home warranty coverage; and contingencies and cancellations; among others, were approved and will be incorporated in the revised form, scheduled for release April 28.

For a complete timeline regarding the RPA release, visit: http://www.car.org/legal/standard-forms/.

Mr. Goddard concluded by saying, “Your Association is here to assist you as you embark on your real estate career, but keep in mind that it’s incumbent upon all of us to take responsibility for our profession and actively participate in our industry. It’s more critical than ever before for individual members to be involved in the political process, whether through direct contributions to federal political action committees or by serving on city councils and planning commissions in our communities.

SAMCAR President Jennifer Tasto (l) with C.A.R. President Steve Goddard at the March 2 combined meeting.

I encourage you to learn about the programs and services C.A.R. provides to you as a benefit of your membership and to determine how you can leverage your position within the REALTOR® organization to ensure the long-term success of the professional real estate practitioner.”

5

April is Fair Housing Month

April 2010

April is . . .

Fair Housing Month

King’s memory, and continue to work tirelessly to provide fair access to affordable housing and homeownership.

T

itle VIII of the Civil Rights Act of 1968 (the FHA), as amended, prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents of legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability).

O

When the National Association of REALTORS® (NAR) was founded in 1908, its mission was to transform the real estate industry into a respected profession and to establish homeownership as a cornerstone of the American dream. “Since NAR was founded in 1908, NAR and its members have influenced nearly every aspect of the real estate industry and our profession,” says Richard Gaylord, 2008 NAR President. “It is REALTORS® who have helped raise the homeownership rate to nearly 70 percent, by advocating for laws and policies that protect making housing more affordable and accessible.”

REALTOR® members and associations proudly observe the 42nd Anniversary of the Fair Housing Act, as well as Martin Luther

Over the course of 100 years, NAR has worked closely with the federal government and other allies to build homeownership programs.

Since passage of the FHA in 1968, NAR has evolved into a leader in the promotion of equal housing opportunity – developing

n April 11, 1968, President Lyndon Johnson, honoring the life and ideals of Rev. Martin Luther King, Jr., signed the history-changing Fair Housing Act (FHA). This landmark Act prohibited discrimination concerning the sale, rental, and financing of housing based on race, religion, national origin, sex, disability and family status.

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April is Fair Housing Month

landmark education for members, seeding programs for minority home buyers, seeking out a more diverse membership, and building partnerships with the Asian Real Estate Association of America (AREAA), the National Association of Hispanic Real Estate Professionals (NAHREP), and the National Association of Real Estate Brokers (NAREB).

I

n 1988 NAR led industry efforts to support important amendments to the FHA. It also expanded and implemented fair housing education requirements for members and has educated REALTORS® on the importance of inclusive housing practices and the promotion of minority homeownership.

Thus, the REALTOR® community, at the local, state and national level, is fully committed to: (1) supporting fair housing laws; (2) improving access to affordable housing; and (3) increasing diversity in the real estate market.

SAMCAR President Jennifer Tasto notes, “As REALTORS® we are vested with the responsibility of ensuring that the goals of the FHA are recognized and achieved so that the American dream of homeownership can become a reality for everyone.”

April 2010

6

The Fair Housing Act Establishes a national policy of fair housing.

The law makes it illegal for any person or business to discriminate in the sale, lease, advertising, or financing of housing – or making housing otherwise unavailable – because of: race, color, religion, sex, handicap (disability), familial status and national origin Some state and local laws also prohibit discrimination based on other factors such as: age, source of income, sexual orientation The Department of Justice offers the Fair Housing Act (45 U.S.C. 3601) on the web at www.usdoj.gov/crt/housing/title8.htm

For more information about the FHA, laws related to fair housing, or a copy of the Act, please visit the Department of Justice web site at: http://www.usdoj.gov/crt/housing/fairhousing/

ADVERTISEMENTS

Reserve your ad spot today! Contact Dalen Gilbrech at SAMCAR: dgilbrech@samcar.org or (650) 696-8206

7

SAMCAR’s Got Talent!

April 2010

Event Was

a Show Stopper!

Talent competition judges Denise Baker (l), Marlin Handley and Eric Berggren peppered the event with humorous commentary.

Contributed by Julie Ziemelis

“What a blast!

The feedback from everyone last night was so positive. They want this event to become a SAMCAR tradition!” exclaimed Special Events Chairperson, Ann Palermo, Old Republic Title. And fun it was! From a dancing leprechaun, a 70’s Disco floor show, a rap routine and a cappella performances, the first SAMCAR Talent Show held on March 18th, was a resounding success! Over 125 attendees came out to enjoy a corned beef and cabbage dinner and watched as eight talented acts performed in front of “celebrity judges” to take home the trophy. In the end, it was Rodger Marinaro, an employee from Marshall Realty, singing “I Left My Heart in San Francisco” who took home the top prize. Runners up included an improvisational theatrical chorus from Fidelity National Title and Al Tovar, Marshall Realty, the wine glass playing master and his dancing leprechaun, Dermot Cronin, also from Marshall Realty. The SAMCAR Board of Directors, who were dressed in vintage 70’s outfits dancing to music from “Saturday Night Fever” got some of the loudest laughs,

but ultimately did not place in the top ranks, which will not prevent us from posting their video on YouTube.

Judges and Special Event volunteers, Eric Berggren, Marlin Handley and Denise Baker aptly handled their responsibilities of providing humorous commentary on each performance. MC Steve Titsworth kept the action going with his funny remarks and jokes. We thank them all for making the evening a memorable and very funny occasion.

Special thanks to Ann Palermo, and the Special Events Committee for their work in putting on this first time event! Thanks to Val Hardwick, Bekins, for sponsoring the decorations at the event, and to our Corporate Sponsors, The Examiner, Property ID, and MPF Builders and Consultants, Inc. Kudos to the SAMCAR Board of Directors for bringing the tasty desserts, too!

news from South Tour

San Carlos Superintendent

Dr. Craig Baker

at South Tour

Contributed by Julie Ziemelis

There are key community activities

and issues that REALTORS® consistently have to be aware of and one of those is “How are our schools?” The South Tour REALTORS® took a proactive approach to this question by declaring March, “Education

Month” and they invited leaders from the school districts to come in to give an update and be available to answer questions from the SAMCAR members.

At the March 9th tour meeting, Dr. Craig Baker, Superintendent of the San Carlos School District provided an update about the local elementary and junior high schools to over 50 attendees.

Dr. Baker started out by telling the group that San Carlos schools are ranked in the top 5% in the country. They are ranked in the top 95th percentile both individually and as a District. “This is an incredible, incredible school district,” Dr. Baker said.

Dr. Baker noted that most of the schools in the district are charter schools who are committed to teaching the whole child with art, music, and theater. They do not rely on state funds and actually

SAMCAR’s Got Talent!

SAMCAR Directors Olivia Edwards, David Zigal and Phillip Houston.

April 2010

8

Second place winners Al Tovar (r) and Dermot Cronin (above, left) performed a wine glass playing / dancing routine; and Rodger Marinaro (above, right) took home first prize with his rendition of “I Left My Heart in San Francisco.”

See more pictures on Facebook!

www.facebook.com/samcar.fans SAMCAR Updates • Event Photos • Upcoming Classes • and more!

Another big special thanks to Anne Oliva, Marshall Realty for coordinating the talent portion of the evening and to Chobe for helping the talent with their musical needs!

A portion of the funds raised during the evening will benefit the SAMCAR Foundation, in its support of community non-profit organizations.

Special thanks to...

The event decoration sponsor Bekins 2010 Diamond sponsor The Examiner 2010 Gold sponsors MPF Builders & Consultants

| Property I.D.

The Fidelity National Title team also placed second for their improvisational theatrical chorus performance.

news from South Tour receive less per pupil than Redwood City or East Palo Alto.

“The way charter schools enroll students is in a series of lotteries.

We start with those who live within the assigned “neighborhood zone” of a school. Once those folks have been placed, we move to the next group in priority order, which are siblings of children already in the school, and so on. We keep going until that school reaches capacity”, he explained.

The take away for REALTORS® is to know that schools in San Carlos, due to all the new young families moving in, are impacted and are currently on a lottery based system with waiting lists for enrollment. Be sure to let your buyers know that these waiting lists exist and that their new home decision should not be predicated on which school they think their child will attend. Dr. Baker made it clear that a child who is a resident of San Carlos WILL get

into a school, it just might not be in the one near a child’s home.

REALTORS® are encouraged to tell their buyers that they need to immediately go to the District office (not the school) and sign their child up. The district has a rolling registration process all year long, unlike some districts that have families sign up by March 15th.

For more information:

www.sancarlos.k12.ca.us The San Carlos School District web site

9

MLSListings Inc. Updates

April 2010

East Bay Reciprocal Access Mid-March Launch

Progress is on track for a mid to late March launch of the reciprocal access interface. MLSListings Inc., has developed a training video and is formulating guidelines for listing in reciprocal MLSs to assist subscribers through this process. These resources will be available on MLSListings’ training page.

Matrix 5 Tutorial Now Available A 40-minute video tutorial on the new features of Matrix 5 is now available online on the training page at: pro.mlslistings.com.

Enhancements include a ‘report listing’ link that directs to MLSListings’ compliance department; the ability to create custom displays and exports; availability of the entire property history on the Agent Full Report; a Hot Sheet search that targets most recent listing updates – such as properties with price reductions in the past 24 hours; and new CMA functionality.

STOP!

MLSListings’ Top 5 Rules Violations All of us remember the catch phrase “rules were made to be broken.” Unfortunately, within an MLS this can be detrimental - especially when rules violations occur repeatedly.

As stewards of listing data, agents must work cooperatively to insure that the listing data is distributed in compliance with the rules and policies set forth by MLSListings.

MLSListings recognizes, as a cooperative, that all of its subscribers are considered equal and have a vested interest in working fairly with one another for their mutual benefit.

Most compliance failures occur as a result of confusion, typing error or hurry - not because there’s a conscious effort to misrepresent the information. We do, however see common rules violations routinely.

As the calendar year comes to a close, we’ve prepared our 2009 Top 5 Rules Violations list along with some quick tips to avoid these errors in the future. The list also comes with an explanation about the rules; how they are applied to the MLS; and how these rules support the purpose of the MLS. The Top 5 list includes: • Incorrect use of the Client remarks area • Failure to update the status of a listing • Failure to list a property within 72 hours or exclude it from the MLS after receiving a signed listing agreement • Failure to Publish a Photo within 72 hours • Publishing lockbox access without an electronic lockbox • Bonus: Misuse of MLS data More at: http://mlslistings.frogpond.com/STOP--MLSListings--Top-5-Rules-Violations-HR103-28289-2164

Affiliates News

The 2010 HUD-1 Contributed by SAMCAR Affiliate Ann Palermo

RESPA reform is now a reality.

One of the main purposes of RESPA reform is the protection of consumers from unnecessarily high settlement costs by limiting the amount fees can change from the initial loan application and the actual closing. The steps to protect consumers include improvement and standardization of the Good Faith Estimate (GFE) form. Additionally, a revised HUD-1 is now used.

The HUD-1 is the document which provides the list of funds paid at closing. HUD is requiring that loan originators provide borrowers with a standard GFE that clearly discloses key loan terms and closing costs and that Title and Escrow Companies provide borrowers with a new HUD-1 settlement statement. For the purpose of this article, I will discuss some of the basic changes to the HUD-1.

Settlement charges, or closing costs, are categorized on the HUD-1 into seven series sections as follows: 1. 700 Series Line Items (Total Sales/Broker’s Commission) This series on the HUD-1 no longer requires the real estate commission to be shown as a percentage. Additionally, the Escrow Officer is advised to obtain a copy of the Listing Agreement that shows what the seller has agreed to pay in commissions or by obtaining a broker demand for all commissions.

2. 800 Series Line Items (Items Payable In Connection With Loan) For line numbers 801 through 803, the numbers must match, or be less than, the numbers provided on the GFE. There is zero tolerance with these lender fees.

For lines 804, etc., only items shown on the GFE may be shown on the HUD-1. The total dollar amount of these fees may not increase more than 10% from the GFE. 3. 900 Series Line Items (Items Required By Lender To Be Paid In Advance) This series deals with items that may change including per diem interest (daily interest charges), mortgage insurance premium and homeowner’s insurance.

4. 1000 Series Line Items (Reserves Deposited With Lender) This deals with escrow deposits for future tax and insurance payments and has not really changed much.

5. 1100 Series Line Items (Title Charges) All fees are shown in lump

Education

April 2010

10

New RPA-CA Available April 28 The final versions of C.A.R.’s new Residential Purchase Agreement (RPA) and three related forms now are available for members to preview. The forms will be released April 28 in both zipForm® 6 and hard copy format.

The RPA is the standard form, produced by C.A.R., used in nearly every residential real estate transaction in the state. The RPA hasn’t been significantly modified since 2002, and the changes approved by the RPA Study Group and the Standard Forms Advisory Committee, with more than 1,000 comments from members, helped inform the process.

Changes impacting the initial deposit; the notice to perform; FHA/VA loans; financing; the appraisal contingency; the wood pest inspection; home warranty coverage; and contingencies and cancellations; among others, have been incorporated in the revised form. RPA courses are scheduled throughout the state and cover everything California REALTORS® need to know about the new form.

For a complete list of courses visit: www.car.org/education/calendar/CourseScheduleQ1/ or sign up for a REALTOR® S.W.A.T. (Special Weapons and Tactics) course, which includes training on the new RPA, at: www.realtorswat.com.

C.A.R.’s REALTOR® S.W.A.T.: “The Tools You Need to Succeed in 2010” classes are one-day events chock-full of tips to help REALTORS® prosper in 2010. Each class features a local economic and market update by a C.A.R. economist; a panel discussion with legal and finance experts to help REALTORS® navigate new laws; four hours of continuing education credits on the new Residential Purchase Agreement (RPA-CA); an overview of how to use the Treasury Dept.’s Home Affordable Foreclosure Alternatives program; and a continental breakfast.

Thursday, April 22 12 a.m. to 2 p.m. at SAMCAR

Stacey Harmon, nationally

recognized social media trainer, will be presenting a class on developing Facebook fansites/business pages for your business.

As part of her presentation, she is offering an overview of Facebook and can answer questions you may have about the newest trends in social media/internet marketing.

Sponsored by Pango Group.

To sign up, please call

(650) 696-8200

Space is limited, registration required.

These sessions are FREE for SAMCAR members.

Affiliates News

sums. One goal here with HUD-1 is to limit all the itemized fees to get rid of the sense consumers have had of “junk” fees that add up. All settlement fees are lumped together on line 1101 but shown in lines 1102 and 1104 as sub parts except for the owner’s title insurance premium which is itemized separately.

6. 1200 Series Line Items (Government Recording and Transfer Charges) First, the government recording charges are part of a 10% tolerance level. Second, transfer taxes have a zero tolerance. There can be no increase from the GFE allowed, unless there is a valid change in circumstances (such as a change in sale price).

7. 1300 Series Line Items (Additional Settlement Charges) Additional items, such as pest inspection and survey which are required by the lender, are totaled on Line 1301 and subcategorized as necessary. Additional closing costs not required by the lender are also shown in this section.

The revised HUD-1 allows consumers to compare charges listed on their GFE with the final HUD-1. Borrowers can cross-reference their GFE with the HUD-1 to understand the terms of their loans because the new HUD-1 outlines the estimated and actual fees in a comparison chart. The Final HUD-1 has a completely new Page 3, which includes this GFE comparison. The Title and Escrow Company, using the GFE information provided by the lender, must complete this form on the

HUD-1. It is divided in 3 parts: 1. Zero tolerance fees (cannot change) These include origination fee, points or lender credit, adjusted origination charge and transfer taxes 2. 10% tolerance fees (charges that in total cannot increase more than 10%) These fees include appraisal, credit report, tax service, flood insurance and up front MIP 3. Charges that can change such as escrow reserves, per diem interest and homeowner’s insurance Note: Title and escrow fees are shown in either Section 2 or 3 above, depending on who selected the title/escrow company. If the lender chose the title company, the fees are subject to the 10% tolerance. If the title company was not on the lender’s referral list and chosen by the buyer/borrower or their agent, the fees are included in the section of fees that can change.

The Escrow Officer will list the items on the GFE that were provided by the lender, run the calculations and determine if tolerances have been exceeded. The lender has the responsibility of reimbursing the borrower if the tolerances were exceeded. If there is a variation outside the tolerances the Title Company must reissue the HUD-1if requested by lender.

Information gathered from Old Republic Title National and HUD website.

aPriL 2010

Weekly Education, Events & Tour Calendar

APRIL 2 – 9

Su 28 04

Mo 29 05

Tu 30 06

We 31 07

Th 01 08

Fr 02 09

Sa 03 10

Classes & Events April 2 12 to 5 p.m.

saMCar office to close at 12 noon

April 8 8 a.m. – 5 p.m.

Gri 112: environmental Concerns, Construction overview, Land use

April 12 1 – 4:30 p.m.

DISCLOSURE! DISCLOSURE! “How to keep you and your clients out of Jail!”

April 21 11 a.m. – 12:30 p.m.

Legal Pitfalls involving short sales and foreclosures

Normal business hours will resume on Monday, April 5 at 8:30 a.m.

Location: SAMCAR | Cost: $149 Registration: http://www.eDesignations.com or 888-785-4800

What is full disclosure and what is not, How to protect your buyers and sellers, Why the TDS is so very dangerous, The legal cases agents are measured against, Why most agents get sued and lose! And much, much more. Instructor: Guy Berry Cost: $39 | Location: SAMCAR | Register: (650) 696-8200

Session 4 of the “Affiliates Ten for ‘10” education series.

HOWARD HIBBARD’s (Real Estate Attorney for the Law Office of Howard L. Hibbard) professional expertise in real estate law has earned him a reputation as a successful litigator and problem solver. Learn how to avoid legal pitfalls and litigation when you are involved in short sale and foreclosure transactions. Training booklet included! Materials include: important forms to protect yourself and your business; step-by-step instructions; website links; and other resource information.

Location: SAMCAR | Cost: FREE | Registration: (650) 696-8200

April 22 10:30 a.m. – 12 p.m.

tax strategies for the self employed

April 22 12 – 2 p.m.

RE/Tech 101: Facebook fan pages for your business

April 23 11 a.m. – 1 p.m.

Lunch & Learn: Microsoft Word flyers

Location: SAMCAR | Cost: $10 | Registration: (650) 696-8200 Instructor: Kelly Clark, Bradford and Company Inc.

Stacey Harmon, nationally recognized social media trainer, is presenting a class on developing Facebook fansites/business pages for your business including an overview of Facebook and Q&A about the newest trends in social media/internet marketing. Sponsored by Pango Group.

Cost: Free | Location: SAMCAR | Register: (650) 696-8200

saMCar Board of directors Meeting

Members welcome to attend these monthly meetings. | Location: SAMCAR

Legislative Committee Meetings April 14 9 a.m.

8:30 a.m.

April Combined Tour Elks Lodge 229 West 20th Avenue San Mateo Presentation:

June Barlow C.A.R. Vice President and General Counsel Breakfast:

TBA

9 a.m. Half Moon Bay Tour Community Center 535 Kelly Avenue, Half Moon Bay 9:30 a.m. Pacifica Tour Community Center 540 Crespi Drive, Pacifica

Format text: font size, color, bulleted lists; insert pictures, clipart and text boxes, page border and background colors. Instructor: Lynn Pesonen Cost: FREE | Location: SAMCAR | Register: (650) 696-8200

SAMCAR Board of Directors Meetings April 28 8:30 a.m.

Marketing Meetings Tuesday, April 6

MLS Tour Sheet Deadline Reminder Broker/Property tours Tuesdays 9:30 a.m. – 1:30 p.m.

Coastside Legislative Committee Meeting

deadline to add tours in MLs Mondays, 11 a.m.

Deadlines subject to change for holidays.

PeninsuLa Legislative Committee Meeting

deadline for Monday holidays prior Friday at 11 a.m.

Location: Half Moon Bay Coastside Chamber of Commerce & Visitor’s Bureau - 235 Main Street, Half Moon Bay

April 21 9:30 – 11 a.m.

Members welcome to attend these monthly meetings. | Location: SAMCAR

May 6 9:30 a.m.

PaCifiCa Legislative Committee Meeting Location: 450 Dondee Way, Suite 7, Pacifica

View tour sheet by Monday afternoon

www.samcar.org/tour