Southeast Region Holds 17 Spots on Inc. Magazine's Top Real Estate Companies of 2012

The Southeastern real estate companies have gained a big spot on Inc. Magazine's 5,000 fastest growing companies of 2012. Out of the 5,000 companies, 69 were real estate companies and out of the 69 total real estate companies, 17 were from the Southeast. It is not a big suprise as the southeast has consistently been on top of lists for most affordable housing markets bringing many to strongly consider pushing their funds towards a mortgage versus renting. View the full list of Inc. Magazine's top real estate companies.

Florida Woman Sets Up Fake Businesses For Multiple Mortgages

Rose Marie Sandrie, is being charged with bank fraud a little over $1 million after she allegedly set up many fake businesses in order to attain multiple mortgages. She is currently being held in the Florida Keys jail on a $1 million bond.

Investigators have gathered information stating that two companies owned by her, Loansource Mortgage and Sunshine Title, were used between February of 2002 and February of 2007 to make escrow account deposits and fraudulent withdrawals from her mortgages provided by National City Mortgage/PNC Bank. Essentially, she was sending false information to National City Mortgage/PNC Bank to get mortgages and then depositing money into escrow accounts which would be later transferred to her own personal accounts.

Read more here: http://www.miamiherald.com/2012/08/29/2973917/woman-held-in-1-million-keys-mortgage.html#storylink=cpy

This fraudulent activity caused National City Mortgage/PNC Bank a total loss of $825,361.67.

Read more here: http://www.miamiherald.com/2012/08/29/2973917/woman-held-in-1-million-keys-mortgage.html#storylink=cpy

Read more here: http://www.miamiherald.com/2012/08/29/2973917/woman-held-in-1-million-keys-mortgage.html#storylink=cpy

Changes in Mortgage Financing Standards

It may get a little harder for some hopeful home buyers to qualify for a loan as Fannie Mae is tightening the standards. Some of the changes include:

• Increased credit score required (up to 640 from 620)
• More tax returns to be reviewed for self-employed applicants (up to two years from one year)
• Change in maximum loan-to-value ratios for ARMs (down to 90 percent from 97 percent)

It is estimated that some of these changes could really affect a large percentage of people applying for loans, specifically self-employed and low credit score applicants. Some good news for borrowers is that some guidelines will actually be loosened such as:

• Change in loan-to-value ratio for some fixed-rate loans on two-unit properties (up to 85 percent from 80 percent)
•  Down payment will drop for some co-op loans

Tips of the Marketing Trade: Part 2

Earlier this week we shared a few ways to increase your website's results on the search engines. These include social media, comments and engagement, blogging and keywords. Here is Part 2 of this important list:

• Start a YouTube Channel. It is free and is based through the second most popular search engine in the world with over 4 billion views per day! We all have some form of expertise to share and what better way to give advice, share tips and create a brand for yourself than through interactive videos? The key to these videos is to make sure they are not too long (3 minutes should be good) and that the focus is on the consumer and how you are helping them. Self promotion and easy plugs will lose people's attention and leave you with a lonely video channel.
• Use everything Google has to offer. Since YouTube is the second largest search engine in the world, you can guess who is number one. Yes, it is Google and being on the first page of it can mean major success. Google offer numerous sites and application such as Google Places, Google Adwords, and Google Plus, which should all be utilized.
• Measure your success to ensure it continues. If there is only one thing that you do from this comprehensive list, do this: Set up an analytics account for your website and study what is working and what isn't. This is the best way to ensure that your keywords are optimal, your bounce rates are low, and your inbound traffic is steady, and hopefully increasing, from your external links. If you own and operate a website, you need to know what this all means and how to measure it. Google Analytics is a great, user-friendly tool that can be easily integrated into a website and Google Webmasters is a more complex tool for the tech savvy website developers.

Tips of the Marketing Trade: How to Get Your Website in the Top Spots of the Search Engines

Being in the real estate industry means that you need to be persistent in your marketing efforts, specifically online. The era of door to door marketing is diminishing as more potential home buyers are starting their search online. It is estimated that nearly 70 percent of active lookers start through online search attempts. This statistics reiterates the importance of search engine optimization in relation to a real estate agents website. So how does one make their website rank high in the searches? There are numerous ways to aid in SEO but here are just a few to get you started:

• Pay attention to keyword details. Years ago the trick was to saturate your website with an abundance of keywords for search engines to pull from but now this can actually harm your website's rankings as the search engine's algorithms have become more advanced and detect repetitive keywords. Choose a list of 5-10 keywords that really speak to your target market, whether they are geographical, product/service orientated, or niche related. Then embed these keywords in numerous, yet appropriate places on your website. To add to this, if you have numerous websites or social media platforms, use these keywords as your anchor text for links between the sites.
• Social Media and Blogging is IMPORTANT. Social media and blogging are not always understood by industries across the board but when you are thinking about increasing your online marketing efforts, they are essential for success. Many of the social media platforms have contracts with corresponding search engines which means their sites are crawled through for active posts, customer engagement and number of external links. This also means that just having a page is not enough. The pages need to be consistently updated, every day if possible, in order to get the return you desire from the search engines.
• Incorporate reviews, comments and social sharing on your website. Getting people to be interactive and comment is the best thing you can have when providing a service to clients. This will enhance your brand recognition and create a following from potential clients. The more people you can get to say great things about your services, the more you can get them to share with their friends, and so on and so forth. Internet marketing is all about making something viral.

Stay tuned for Part 2 later this week on how to get your website in the top spots of search engines.

Fannie Mae & Freddie Mac Showing Profitds and No Longer Needing Bailout

During the 2008 collapse of the housing market, Fannie Mae and it's brother company, Freddie Mac were seized by the government after they nearly feel into bankruptcy. Four years later, Fannie Mae is reporting a second quarter profit of $5.1 billion and no longer requires federal bailout money.

One of the major causes of this increase in profit? The up and coming real estate market that is projected to continue to increase throughout 2012.

Another reason Fannie Mae is not seeking federal bailout is that the losses from the subprime era loans its acquired were much lower than expected; therefore, Fannie did not need to allocate their funds to future losses.Freddie Mac is right behind it's sister company with second quarter profits of $3 billion, resulting in no need for federal bailout funds.

The current debt held by both Fannie and Freddie equals close to $142 billion, dropped down from the $188 billion total amount of federal bailout they have received over the past 4 years.

Top 15 Real Estate Websites

If you are a real estate agent, using the right website to promote your properties is key to being successful in an era where most home buyers search online first. Check out the following list to see where your favorite website ranked in the top 15 real estate websites ranked by EBizMBA Rank according to Alexa Global Traffic Rank and U.S. Traffic Rank.


15. FrontDoor
14. Rentals
13. ForRent
12. ApartmentRatings
11. ApartmentGuide
10. HotPads
9. Apartments
8. ZipRealty
7. RedFin
6. Rent
5. Homes
4. Realtor
3. Trulia
2. Yahoo! Real Estate
1. Zillow

Large Mortgage Insurance Companies Under Investigation for "Kickbacks"

The Consumer Financial Protection Bureau has recently served subpoenas to MGIC Investment, Genworth Financial, Radian Group and American International Group - four of the top mortgage insurance companies servicing American home buyers.

The investigation deals with the alleged transfer of billions of premiums from the insurance companies to the banks which made the loan. These premiums were charged to mortgage borrowers and then given to the banks in exchange for more insurance business. These kickbacks are illegal and an unethical practice.

Unfortunately, these type of referral situations can be easy for banks as borrowers typically head the advice of their lenders regarding which mortgage insurance company to use. This is where it becomes increasingly important for borrowers to take a well rounded look at their options and decide which insurance company is right for their situation. If you have any further questions, please feel free to contact our mortgage experts at www.aapexfinancial.net

Where Should You Invest?

Thinking about investing in some real estate? The National Associate of Realtors has compiled a list of the top cities of 2012 so far to purchase your next property. The list is a collaboration of cities based on statistics such as the unemployment rate, property inventory level and median days on market. Below are the top five:

1. Tucson, AZ
Median List Price: $170,000
Inventory Level: 6,600 homes for sale
Median Days On Market: 86
Unemployment Rate: 7.8%

2. Austin, TX
Median List Price: $229,500
Inventory Level: 8,329 homes for sale
Median Days On Market: 77
Unemployment Rate: 6.1%

3. Kansas City, MO
Median List Price: $134,150
Inventory Level: 7,539 homes
Median Days On Market: 103 days
Unemployment Rate: 7.7%

4. Baltimore, MD
Median List Price: $239,500
Inventory Level: 13,053 homes
Median Days On Market: 120 days
Unemployment Rate: 7.5%

5. Fort Worth, TX
Median List Price: $160,000
Inventory Level: 8,242 homes
Median Days On Market: 79 days
Unemployment Rate: 7.1%

Return of the Foreclosures?

This year's second quarter marks the first time since 2009 that foreclosures are back on this rise. It is speculated that this is due to the majority of lenders now tapping back into the default loans they put a halt to during the robo-signing era of 2010.

Just over 300,000 new case of foreclosures have sprouted up this year and a large amount of them are from entities you wouldn't expect: large banks. Deutsch Bank, J.P. Morgan and Citibank are a few examples of banks who have failed to pay HOA maintenance fees on properties they reclaimed from delinquent homeowners and now, these banks are finding themselves in court foreclosure cases.

We all know the devastating effects of foreclosures such as the value decreases it causes on comparables in relative areas but what about how it affects those living in HOA controlled developments?  In this situation, delinquency of monthly dues can cause the maintenance bill for all other paying homeowners to rise while at the same time reducing the amount of amenities available to them.

What Kind of Place Can I Get For $300,000?

Real Estate prices clearly range acorss the different regions of the U.S. In fact, they can range from one neighborhood to the next. It can be very interesting to see the price differences, especially when looking for a new place to settle down or invest. Here is a little showcase of what kind of dwelling you can attain for $300,000 in different areas:

Charlotte, NC
4 bd, 3 bath single family home
Built 2009
Granite counters
Wood flooring throughout













Detroit, MI
8 bd, 6 bath single family home
Built 1927
Attached garage

New York, NY
1 bd, 1 bath condo
Brick building
Fireplace

Los Angeles, CA
3 bd, 1 bath single family home
Built 1921
Gated yard

Portland, OR
3 bd, 1 bath single family home
Built 1938
Large back yard












Chicago, IL
3 bd, 3 bath single family home
Built 1957
Large, fenced in back yard
Fireplace

Miami, FL
1 bd, 2 bath condo
Built 1964
Beach views

Add Value to Your Home Through These "Fixes"

Thinking about selling your home? If so, you may want to take a look at this comprehensive list of "fixes" you can make to your home to increase its value:

• Make your appliances match: Many time older homes may have gone through a series of appliance changes. Sometimes this means that they do not always come from the same manufacturer or even the same style. If you don't have the budget to buy all new appliances, you can order matching face panels.
• Update the bathroom: All home buyers have a strong interest in the bathroom and an old, dingy room can easily steer them away. Update the floor with new vinyl which can be as easy to install as placing it right on top of the old flooring. If the bath tub really needs an updated look, a prefabricated tub can often be cheaper then trying to fix the weathered area.
• Storage area is important: Many old homes lack closet and storage space, an increasingly important feature home buyers look for. Adding extra units into bedrooms, offices and even hallways is worth the extra money.
• Add another bedroom: Some homes have a loft area which looks over the downstairs area. This can be a nice feature but what will add even more value to a home is adding a full wall to the loft and calling it an additional bedroom.
• Pay attention to the front of the home: A house should be sound throughout its structure with no sign of peeling siding or unfinished carpentry but if the budget is short, at least make sure the front of the home looks fantastic. This is the first thing the home buyer sees and first impressions are everything.

Wall Street Journal Announces New Global Real Estate Section

The Wall Street Journal, one of the United States top newspapers, announced it will be unveiling a 16 page real estate spread this September or October. The spread will be available in both print and online and will focus mostly on high-end real estate.

The section will have a variety of topics focused on the real estate industry such as family finance, home repairs, and well known neighborhoods and properties. Slideshows and interactive videos will be included on the website for easy showcasing of properties.

The WSJ believes their real estate section will surpass the New York Time Company's real estate section as it's content will be broader.

Wells Fargo to Pay $175 Million to Minority Homeowners

Wells Fargo will pay $125 million to African American and Latino borrowers who were allegedly discriminated against in their loan process. Wells Fargo has stopped funding independent brokers this past Friday as the loans that were considered to be unfair and biased were originated through these brokers.

Wells Fargo was accused of leading about 34,000 minorities into sub prime mortgages with higher interest rates and fees, according to the Department of Justice. The large lender has agreed to pay a total of at least $175 million to settle the case.

In addition to the $125 million to paid, Wells Fargo will be giving $50 million in homeowner assistance grants in numerous U.S. metropolitan areas. These grants can be use as renovation financing, down payments and closing costs.

New Mortgage Disclosure Forms to Hit the Market

Whether you are a loan officer, real estate agent or previous home buyer, you know the confusion and aggravation mortgage disclosure forms can bring. The paperwork is lengthy, the signatures are vast and the figures are everywhere. It can be especially overwhelming for a new home buyer who is not familiar with all the rates and payments which is why the Consumer Financial Protection Bureau just shared their plan to simplify these disclosure forms.

One of the new disclosures may be named the Loan Estimate and would merge information from the initial lending act and Good Faith Estimate regarding closing costs and terms. The borrower would also get a Closing Disclosure three days before their closing which would hold information from the final lending act and HUD-1.

Normally when new rules come into action, creditors get a year to get into compliance and since the bureau is still gathering comments and testing the new disclosures, it is estimated that these new forms wont make it out on the market until at least 2014.

Man Uses 62,000 Pennies to Pay Off Mortgage!

Is it possible to pay off your mortgage with spare change? Yes, in fact one Massachusetts man did just that with pennies he saved over the years.

Thomas Diagle first received his loan 35 years ago when he bought a house with his wife in Milford, MA. Right after signing the loan documents, Diagle found a penny on the ground and made a joke with his wife that they could use it to start paying off their mortgage. Who would have thought that one day they would in fact pay the remainder of their loan with 62,000 pennies!

"I never saved anything in my life but pennies," said Diagle. All this saving and rolling paid off when he walked into his local bank, Milford Federal, and delivered the 50 cent rolls of pennies he had collected over the last 35 years. According to Milford Federal, it took 2 full days to unroll the pennies to put them toward the loan.

Celebrate!

HAPPY FOURTH OF JULY!! Aapex Financial would like to wish everyone a happy and safe holiday.

Celebrity Real Estate For Sale - 50,000 Square Feet!

As stated in our previous post, luxury real estate is on the ups. Naturally, this means luxury property owners are taking advantage of the thriving market and putting their places up for sale in hopes that now will be the time they will get purchased. Here are a few well-known sellers with luxury properties on the market:

• The Beach Boy's Mike Love: $5.9 million Tuscan style home in Pebble Beach, CA

• Ryan Phillippe: $6.9 million zen inspired home in the Hollywood Hills

• 50 Cent: $9.9 million 48,515-sq-foot Connecticut home

Luxury Real Estate Market Is On a Roll

The debate continues, is the real estate market picking up or not? Well, new statistics from NAR and the U.S. Department of Housing and Urban Development show that the luxury real estate market buyers have really gained back confidence and have began putting serious money down on properties.

Overall, exsiting homes priced at $1 million or more have seen a 17 percent increase in sales when comparing April 2012 to April 2011. The Miami market has seen a 16 percent increase in sales over the first quarter and New York's luxury market has seen a rise in condo purchasing.

Have your own luxury real estate success story? Let us know about it by leaving a comment!

Foreclosure Can Be Valid Without Holding the Mortgage Note

New foreclosure updates from the state of Massachusetts highest court - a foreclosure can be valid even if the foreclosing entity does not have the mortgage note but as long as they have proper authority to act on behalf of the note holder. This new decision was made by the MA Supreme Judicial Court, overturning the lower court.

The entire basis of this recent decision by the Supreme court started with a foreclosure law case at the lower court level between Fannie Mae and Henrietta Eaton of Rosindale, MA. Eaton's claim was that Fannie's foreclosure lacked validity as they were not holding the note of her property or the proper authority to act on the foreclosure. This is believed to be a step forward for homeowners as it will put more due diligence on the servicer and allow homeowners to understand who exactly owns their home loan.

View the court case Eaton v. Federal National Mortgage Association

Real Twitter Success Stories

By now we are almost all social media believers, well almost all of us. One of the most misunderstood social media channel is Twitter. People find it hard to comprehend how a measly 140 character blurb can gain any true potential of a lead. Here are a few real Twitter success stories to prove it:

• Tim Ayers, Realtor - Sooke, BC
• Wins 3 clients from one simple Tweet
• Jay Thompson "Phoenix Real Estate Guy" - Phoenix, AZ
• Top RE professional ranking on top of the Real Estate blogs
• Uses Hootsuite to set up alerts for the words "moving" and "Phoenix" in order to offer polite advice to newcomers and gain their business
• Kurt Opray, homeowner - California
• Sold his CA bungalow for a whopping $1.05 million using tweets along with videos and blog/website postings

Who Attends Open Houses........

An open house can be a great asset for real estate agents, and their sellers, for placing their homes on display. However, sometimes the people who attend are not always the prime target market and this is something any real estate agent will attest to. Zillow.com published a great story about this very subject which shares the 5 top kinds of people who attend open houses. There are as follows:

1. Real Buyers - The top of the list are the people that an agent actually wants to see at an open house. They may or may not be fully ready to take action yet but they are certainty open to negotiation.
2. Noisy Neighbors - Everyone has that neighbor you catch peering in your windows when they think your not looking. They are curious to see what color you have on your walls, how you decorated your foyer, what style furniture you decided on for your living space. This is their chance and they will be there.
3. Buying Agents on the Prowl - Many times there will be buying agents attending open houses on behalf of their clients. As long as the are respectful and keep their opinions to themselves, they should not be worried about.
4. Curious Listing Agents - Sellers will sometimes interview and use the advice of many listing agents before settling. Some of these listing agents may drop by the open house to see if any of their long consulting hours had any affect on the seller.
5. Old Inhabits - An open house will undoubtedly bring forth people who used to live at this property. They are interested in seeing how the house looks currently, what changes have been made and what memories they can evoke by setting foot on the property.

Thinking About Retirement? Check out These Places!

Are you thinking about retiring in the near future? Or maybe you just want to evaluate a few places you may want to eventually settle down? We have compiled a list of areas that may be of interest according to geography, property value, climate and other factors:

• Pensacola, FL
• Average house value: $215,000
• Sales tax: 7.5%
• Crime rate: 5.45%
• All over warm climate, beach atmosphere and close proximity to urban living
• Boone, NC
• Average house value: $216,000
• Cost of living average: 93.4 (U.S. average is 100)
• Average appreciation rate over past 10 years: 6.30%
• Mountain living with plethora of outdoor activities
• Walnut Creek, CA
• Average house value: $657,000
• Open acreage available: 2,704
• Amount of retiree population: 36 percent of the population is 55 or older
• Open green area equipped with a downtown area full of high end shops and restaurants
• Santa Fee, NM
• Average house value: $421,000
• Amount of homes built after 1970: 60%
• Average appreciation rate over the past 10 years: about 5%
• Diverse culture and old city charm
• Lincoln, NE
• Average house value: $155,000
• Amount of violent crime per 1,000 residents: 4.9%
• Lowest unemployment rate: 3.5% in 2010, added more than 15,000 jobs since 2000
• Great opportunity for those seeking additional hobby work

Texas Helps Their Firefighters Through Real Estate Assistance

Goldwasser Real Estate from Austin, Texas has joined forces with the Texas State Firemans and Fire Marshal's Association to develop a home buying and selling program for firefighters. Goldwasser real estate will give 20 percent of their typical 3 percent home sale commission to each firefighter who uses them to buy or sell a home. The Texas Wildfire Relief Fund will then be given 5 percent and the other 15 percent will be given to the firefighter.

This has started a trend with a few other organizations contributing such as Proficio Mortgage Venture of Dallas and Capital Title Company of Austin. Proficio's State Heroes program discounts closing cost on purchase and refis for firefighters nationwide and Capital Title will donate $500 to the Wildfire Relief Fund for every closing.

Eventually this service is hoped to also reach police officers, veterans and corrections officers.

Social Media Tools for Real Estate Agents

The National Association of Realtors distributed statistics recently quoting that 90 percent of Real Estate Agents use some sort of social media. This is no surprise as one log into Facebook will uncover a plethora of agents placing property pictures and success stories all over. Even so, there are a few avenues that agents may not be utilizing that could prove beneficial:

• Google Alerts: This allows you to insert particular keywords for industry information to share with your clients or potentials. Then Google will search online for this information for you and send you a list of relevant news topics.
• Google Analytics: If you have a personal website for your properties, hooking up an Google Analytics is one of the best free analysis tools you can use. It will show you demographic statistics of your readers, hits per page, suggested keywords, etc.
• Hootsuite: This is a third party content distributor which means that when you post something on this site, it will automatically post it amongst all of your social media sites for you. This can help reduce time but keep in mind if you are looking for page rankings for your social media sites, automatic postings can slightly minimize the points you get with search engines.
• RealBird: A Real Estate social media platform that has a Facebook application that allows you to add a "Home for Sale" tab on your business page.

"Unearned" Fees are OK by the Supreme Court

It was recently announced by the U.S. Supreme Court that "unearned" fees charged by service providers in real estate transactions are not against the law unless they are split amongst more than one party. This presents some uproar with many as it is believed to bring back the unethical practices of creating unnecessary fees and/or raising up fees by service providers that both the Justice Department and Department of Housing and Urban Development have fought against.

 It is important to note two things:

1. This decision will not affect state laws against individual fees and therefore will not override certain practices
2. The Consumer Financial Protection Bureau still has an independent set of regulations in which it can place upon companies which it feels are being unethical. This means that this decision will most likely not give free reign to all service providers looking to charge "unearned" fees.

 

 

 

Theme Ideas for Outdoor Living Space

One great addition to a home is an outdoor living space. There are many different styles of homes and each one can gain further ambiance through the theme of its outdoor room. Below are a few ideas for outdoor living space themes.

• Beachy, laid back theme: Equipped with relaxed lounge chairs and umbrella style shading from the sun. Shades of blue and beige can create a warm and serene environment.
• Ultra chic South Beach theme: Crisp and modern flat lounge couches and high top chairs catering to a cocktail bar area will make you think you stepped right off the white sand and into the Miami nightlife. White and silver colors will keep the modern look alive.
• Southern and sweet theme: Wicker style garden furniture and flower arrangements create a southern inspired relaxing area for tea and guests. Light blues and soft corals will add a sweet touch to this look.
• Alpine resort theme: Hard wood and a jacuzzi area will make you feel right at home in a cold climate. Deep mahogany and cherry tones will give this outdoor space a comfortablle feeling.
• Safari cruise theme: Animal skin rugs and earth tone vases full of African inspired roughage will give a space a natural vibe.

Top 5 U.S. Cities Where Home Prices Are Rising Fastest

CNN Money has released the top U.S. cities which are regaining their home prices at the quickest rates. The west coast prevails with the strongest competitor, Oregon, holding three of the top five spots.

1. Madera,CA
Median home price: $125,000
Drop since market peak: 53.1%
Forecast gain through 2013: 21.5%

2. Medford, OR
Median home price: $144,000
Drop since market peak: 37.1%
Forecast gain through 2013: 20.1%

3. Yuma, AZ
Median home price: $105,000
Drop since market peak: 37.4%
Forecast gain through 2013: 16.7%

4. Corvallis, OR
Median home price: $224,000
Drop since market peak: 11.4%
Forecast gain through 2013: 13.2%

5. Eugene, OR
Median home price: $166,00
Drop since market peak: 21.2%
Forecast gain through 2013: 12.4%

ApartmentList.com Wins Webby Award

The Webby Awards, leading international award for Internet websites, advertisements, videos and applications, just finished their 16th annual ceremony in NYC. All U.S. states and 60 other countries around the world contributed 10,000 entries for possible winners.

Among these entries was ApartmentList.com, a nationwide apartment search engine, just beginning in 2011. What makes this website different than others in the same category is the interactive features such as connectivity to landlords and other searchers through platforms like Facebook. This was a main contributing factor to enabled ApartmentList.com to take home the award for best real estate site of the year.

The Market is on a Roll

You may be noticing a trend of articles focusing on the increasing levels of the market and this is for good reason. The first quarter of 2012 brings the lowest mortgage default rate since the third quarter of 2008. Loans marked of at least 30 days late have dropped from the peak of 10 percent in 2010 to 7.4 percent in the last few months. Smaller delinquencies, anything just one day late, are at an even lower level. Foreclosures in general have also decreased, with the start of foreclosures slowing in 41 states and the rate of loans in the process of foreclosure slowing in 22 states.

All of this, along with low interest rates, is leading to increased demand and ultimately increased home sales. This may very well be the year it turns around.

Free Social Networking Ads for the RE Professional

RESocialClub.com started as a social media networking platform geared specifically for real etsate professionals by enabling agents, investors, developers and lenders to virtually meet for future projects. The site has now been revamped and is currently establishing itself as a FREE advertising site for real estate professionals to showcase properties through means of photos and videos.
RESocialClub.com is offering free advertisement functions currently as it is trying to differentiate itself from other social media sites by its focus on the real estate industry. Could this be the new Facebook for real estate professionals?

Largest U.S. Real Estate Deals

Have you ever wondered how big some of the largest real estate deals in the U.S. were? If so, here is a great list to show how high some properties have been sold for:

• Stuyvesant Town -- $5.3 billion

• GM Building -- $2.8 billion
• Rockefeller Center -- $1.85 billion
• Worldwide Plaza -- $1.74 billion

• MetLife Building -- $1.72 billion
• Travelers Complex -- $1.58 billion
• News Corp. Building -- $1.52 billion

• 1301 Avenue of the Americas -- $1.46 billion
• Five Times Square (The Ernst & Young Tower) -- $1.28 billion

Is 2012 the Year of Stabilization and End of Home Price Drops?

Recent reports and economists have suggested that the U.S. has hit its bottom when it comes to real estate price drops plaguing our country for the past 5 years. NAR's first quarter report of 2012 show that final sales prices have risen in about 50 percent of the areas it analyzes, compared to a mere 19 percent in the fourth quarter of 2011.

 David Stiff, Chief Economist of Fiserv, said “We expect that home prices, which generally lag changes in sales activity by nine to12 months, will stabilize by the end of this summer and then rise at an annualized rate of 3.9 % over the next five years,” indicating the strong prediction that 2012 will be the end of price drops.

Consumer Financial Protection Bureau Proposes New Rules for Mortgage Servicers

The brand new federal institution, Consumer Financial Protection Bureau, will be proposing new rules this summer for mortgage servicers to adhere by in order to further protect the consumers. This should only truly hinder the mortgage servicers that, in the past, have not had the best record of keeping their consumers aware of their current mortgage standings or supplying them with enough information to make appropriate decisions. The theme of the new rules is keeping consumers out of the dark when it comes to their mortgage details. Some idea as to what the rules will contain have been released and have been recapped below:

• Easy to read monthly statements so that consumers can get a breakdown of their payments in terms of principal, interest, fees and escrows
• Advanced disclosures of rate adjustments so consumers who have Adjustable rate mortgages, or other forms of mortgages allowing for fluctuating rates, will know before the change and have alternatives for payments beyond their budgets
• Advanced notices on "forced-placed" insurance, such as fire insurance, that the servicers are able to charge the consumer if they do not purchase it by themselves. This will allow the consumer to make the decision to find it on their own in a more affordable manner before they are charged without their knowledge by the servicer.
• Further attempts to help the consumers in times of financial distress. This is in hopes to decrease the level of foreclosures and provide accurate advice to homeowners in need before it is too late.
• Crediting money back to consumers accounts promptly and without the usual five to ten day grace period
• Customer service will be increased so that any errors are looked at immediately and discussed with the consumer. This will also transition into delinquent borrowers or those close to becoming so.

Newly Developed Home Tips

Spring is here in full bloom and there is not a better season for selling homes. Newly developed homes are still on the market and can be a great alternative for a buyer looking for a new place of their own. Below are are some tips for improving a home to be and making sure you get what you want:

• If you are purchasing a brand new home in a new neighborhood, do not feel uncomfortable asking for new wall paint, molding or even flooring. Most brand new homes that are still being developed can have builder upgrades and changes adjusted within the financing/price.
• Newly developed homes sometimes offer a better chance of price negotiation over for sale by owner situations. The previously lived in homes can hold a particular value to the seller that they are not willing to budge on while a builder will be pressured by the market to sell.
• Do not let a builder force you into using their bank financing. Always look into all financing options to find out what is the best for your situation.
• Make sure that any newly developed home value that comes from added amenities, such as a pool or playground, are either finished or written in contract to be completed. Promises of these amenities commonly get put on halt once builder funds deplete.

Online Real Estate Agent Rating System

NeighborCity®, an online residential real estate service, will now be offering its users a matching system where they can choose which real estate agent they want based on an overall score developed through a series of rating dimensions they choose.

This is thought to be the first avenue available that the consumer can pick an agent based on performance and not through third party references. This program is called AgentMatch and provides the user with graphs and analytics so they can see an overall view of the agent's history. The user can then compare the overall score to other agents within their location group.

To learn more about NeighborCity's AgentMatch, check out their website HERE

Potential Bankruptcy Ahead for Ally Financial

As reported by the New York Post, Ally Financial appears to possibly be sending its mortgage unit, ResCap, into bankruptcy. Ally is facing a debt payment due May 14th which they currently do not have the funds to pay.

Ally Financial was formerly known as GMAC, until it changed its name to Ally Financial in May of 2009. A hefty bailout was given to Ally during the 2008 financial crisis, $12 billion of which is still owed to the government. Top executives of Ally have been ordered to have their annual salaries reduced by 10 percent due to the large amount of money the company still owes the US government.

An Ally spokeswoman did not comment to the New York Post regarding the bankruptcy references but speculation is still in the air as the company appears to have little to no other options with the amount of time on the table.

 

2012 Nationwide Open House Event

Calling all real estate agents- looking to showcase your properties? Look no further than the 2012 Nationwide Open House Event on April 28th and 29th. This event began in King County in Washington State through the Snohomish Association of Realtors in 2007 and has now become, not only a nationwide event, but a worldwide phenomenon that has spread across 13 countries!

This event is advertised as a time to not only showcase homes that you may have for sale but to also learn about other properties through discussion of current conditions, financing, improvements and other related advice the numerous real estate professionals are able to provide. Learn more about your local opn house event through your real estate agent or current mortgage company.

HUD Announces Indefinite Debarement of Reverse Mortgage Scam Participants

Three loan officers and one title agent, all in South Florida, were given indefinite debarment from HUD from charges of wire fraud through a reverse mortgage scam. The four individuals, Marcos Echevarris, Louis Gendason, John Incandela and Kimberly Mackey, are all banned from ever conducting business with the federal government.

Not only did the three loan officers persuade financially inadequate elderly borrowers to refinance but Mackey, licensed title agent, failed to pay off the borrowers existing loans during closing with false HUD-1 Settlement documents.

This scheme effected elderly borrowers in 7 different states from May 2009 to November 2010.

South Florida Real Estate Shows a Glimmer of Light

There may be hope for South Florida. Today, the Miami Herald released an article focusing on the decrease in bank-owned and foreclosure set homes ruling the real estate market. A year ago, these distressed properties totaled 70 percent of the listings while now, regular for sale homes are taking half the selling market. This seems like quite the step up in one year.

A Miami brokerage released some statistics showing that single-family homes in Dade county increased price by 26 percent from the beginning on 2011 to 2012, most likely due to the 17 percent decrease in distressed properties.

To read more about this topic from the Miami Herald, Click HERE

Read more here: http://www.miamiherald.com/2012/04/11/2745126/south-florida-real-estate-creeping.html#storylink=cpy

New Mortgage Servicing Rules to Improve Foreclosure Rates

Today, the federal government proposed some new foreclosure rules for the countless homeowners facing losing their homes. The rules, proposed by the Consumer Financial Protection Bureau, require mortgage servicers to provide homeowners with standardized statements every month in addition to warnings regarding their interest rates and insurance.

This may be a long awaited response to the problems plaguing the mortgage servicers for years and retrospectively homeowners. Record keeping and security will also be addressed within the rules estimated to be finalized by January of 2013. The Bureau hopes that improving the issues of communication and trust between the servicers and borrowers will lead to a decrease in foreclosure rates.

10 Most fun and Affordable Cities in the U.S.

MSN released the 10 Most Fun and Affordable cities and NC and SC made 3 of the 10 spots! Check out the list here:

1. Ocean City, MD
2. Ala Moana-Kakaako, Honolulu
3. Tempe, AZ
4. Scottsdale, AZ
5. Greenville, SC
6. Sacramento, CA
7. Wilmington, NC
8. Anchorage, AK
9.  Makiki, Honolulu
10. Winston-Salem, NC

To see all the statistics for each one of these cities, click HERE

The Most Unconventional Apartment Complexes in the World

Here are some of the weirdest, most unique and most unconventional apartment complexes in the world:

Container City, London
Apartments made of steel shipping containers

MVRDV Stackable High Rise, Copenhagen
A leaning, glass covered skyscraper

Old High School Commons, Massachusetts

Former two-story high school turned into a 15 unit complex

Hundertwasserhaus, Vienna

52 resident apartments built in abstract colors and shapes equipped with foliage sprouting

Destiny Lofts, Toyko

A play-land inspired loft apartment block

Spring Home Buyer Season in Full Bloom

The warm weather of spring and summer has kicked in early this year, causing the home buying season to begin. February already beat last year's home sales by 9 percent, and the National Association of Realtors predicts it will continue to rise. In fact, the 4,300 real estate agents surveyed in February showed that single family home market confidence is at its best since 2008.

Home prices are fluctuating throughout the nation but many metropolitan areas seem to be rising and are predicted to continue on this path. According to Standard and Poor's Case-Shriller index of 20 U.S. cities: Denver, Phoenix and Detroit all showed annual home price gains.

The home buying spring season that typically spans from March to June started early this year and can been seen through the 25 percent of home bought in February by investors. It appears that more home buyers who have been waiting to sell due to home values and pricing have stepped into the market.

What is an "Underwater" Homeowner To Do?

When a homeowner is considered "underwater," it means their current mortgage balance exceeds their actual property value. Being unable to refinance a home mortgage due to lack of property value has been a major problem for many U.S. homeowners the past few years.

HARP, the federal Home Affordable Refinance Program, offers an option to some homeowners finding themselves in this predicament; however, borrowers who have ANY delinquent payments in the past 12 months are not eligible for the program that can allow refinancing as high as 125 percent the homes value.

Other requirements include Fannie Mae or Freddie Mac being the loan owner before or as of May 31, 2009, the loan has not been refinanced under HARP previously, and the current loan-to-value ratio(LTV) is at least 80 percent. Credit scores and individual lender guidelines are also factors when becoming eligible for this program.

What is your first step in finding out if this program is available to you? See if your mortgage is owned by Fannie Mae or Freddie Mac by clicking on both of these look-up tools:

Fannie Mae Look-up Tool 

Freddie Mac Look-up Tool

                                                              

Home Price Indicator - Your Local Forecast

It is estimated that median home prices will fall 3.6 percent by the end of this June. Interested in finding out where your home market is estimated to be by the end of June, 2012? CNN Money offers a home price indicator tool geared to pull information on 384 different markets. Click on this LINK to find out what you can expect by June, 2012.

Reverse Mortgages - The New Retirement Fad?

Traditionally, a reverse mortgage is where the lender pays money to an elderly homeowner for the duration of them living in the home. The homeowner must be 62 years of age and does not have to have income or very high credit scores to qualify as they are not making any monthly payments while they are occupying the home. Once the home is sold, the loan and any interest accrued is repaid.

New statistics have come out from a MetLife Mature Market Institute and National Council on Aging study showing that the interest in these reverse mortgages has now increased to the younger demogrpahic of baby boomers. In 1990, the average age of reverse mortgage borrowers was 76 while now it has dropped to 73, with 21 percent of people considering the option being from ages 62-64 years old.

Since the FHA has made reverse mortgages available at very reasonable financial standards, this younger demographic has turned to the once "older" option. Some baby boomers are looking into using reverse mortgages as a way to use their home equity for retirement planning but before you consider this option, please consult a mortgage professional. Any questions can be addressed by calling our office at 704.892.5211

Happy St. Patrick's Day!

Aapex Financial Solutions would like to wish you and your families a Happy St. Patrick's Day. Have a safe and fun holiday and click here to learn more about St. Patrick

and what the holiday is all about.

 

Another Large Mortgage Company Gets Hit by the SEC

According to the Huffington Post, three executives from Thornburg Mortgage Inc. have been charged with civil accounting fraud. In the past, Thornburg Mortgage was the second largest independent mortgage company in the US, after Countrywide. The allegations state that the executives conspired to hide terrible conditions and overstate the company's income by more than $400 million during the collapse of the housing market.

The lawsuit was filed this Tuesday in Albuquerque, N.M. The Securities and Exchange Commission is seeking fines and restitution from the three executives and is hoping to ensure they will no longer be able to serve on the board of any public company.

Florida - 14 Year Old Buys Home!

As reported by Chana Joffe-Walt of NPR - Amongst the land of Florida foreclosures, a young teen found an opportunity to capitalize on the bad housing market. Willow Tufano, 14, grew up in Florida with her real estate agent mother. She experienced the housing boom when home prices were skyrocketing and her mother's business was flourishing. Soon there after, the harsh reality of economic downturn hit her surrounding neighborhoods and her mother began working with flippers and investors to continue her business.

What started out as a Craigslist hobby of selling leftover furniture from flipped homes blossomed into the purchase of this 14 year old's first home. A two bedroom home was being auctioned for only $12,000 and Willow jumped on the opportunity. She purchased the home with her mother and now rents it out to a young couple, making her possibly one of the, if not the, youngest landlord in the U.S. She plans to eventually obtain full ownership of the home by having her name alone on the title when she turns 18 years old.

Lowered Fees for Refinances and Compensation for Military Foreclosures

Today, President Obama announced at a news conference that the Federal Housing Administration will be lowering the MIP (mortgage insurance premium) for refinances. The MIP will be lowered from the original 1 percent down to 0.01 percent and the annual fees on FHA loans made prior to June 1, 2009, will be lowered from 1.15 percent down to 0.55 percent.It is estimated that this plan will effect as many as 3 million borrowers and save them an average of $1,000 a year.

In addition, mortgage servicers are to supply members of the military, who faced foreclosure under incorrect circumstances, with compensation in the form of lost equity and interest. Military members who also were denied foreclosure rights will be receiving refunds.

Celebrity Home Selling Spree

It appears that many celebrities are selling their upscale, luxury homes on the market. Will they sell? Tell us what you think. Below are a few key points to recent celebrity homes that went on the market:

Michael Jordan
Chicago-Highland Park
$168 million property
Regulation sized basketball court, 8 acres, 56,000 square feet, outdoor tennis court, guesthouse

Anderson Cooper
NYC-Garment District
$3.75 million penthouse
Multi-room surround sound, 3,100 square feet, landscaped 1,700 square feet deck, limestone bathroom floors

Dick Clark
Malibu, CA
$3.5 million property
Secluded location off Pacific Coast Highway, 22.89 acres, ocean view, built-in buffet and shag carpeting, adobe style

Zillow and Tom Ferry Join Forces for Real Estate Product Development

Zillow, a leading real estate informational website, has announces that they have joined with real estate and motivational speaker Tom Ferry to assist in product development. Ferry will bring expertise through helping clients with lead generation as well as review page management. In the past, Ferry and Zillow have been linked together from Real Estate Bar Camps where Zillow was a sponsor for workshops and conferences.

Tom Ferry has published work in the New York Times, Wall St. Journal and USA Today and has an extensive background as a business and life coach.  To read more about Tom Ferry and his recent partnership with Zillow, read the full press release HERE

Bank of America Cuts off Fannie Mae Due to Repurchase Fear

Bank of America is cutting off the sales of new mortgages, excluding some modifications and refinances, to Fannie Mae staring this month due to the disagreement in their repurchasing stance regarding insurers dropping mortgage insurance coverage.

Fannie Mae buys mortgages sold to them by lenders and then sells them to investors by them means of packaged securities. Fannie Mae requires that borrowers obtain MI, mortgage insurance, if the loan exceeds 80 percent of the value of the home.

Bank of America is concerned that insurance rejections will result in heighten repurchasing costs for them and after the Countrywide acquisition in 2008, they are making an effort to reduce chances of any additional costs accrued through faulty loans.
 
Bank of America will be selling their new loans to Freddie Mac and Ginnie Mae as well as potentially keeping some loans in house. This is causing speculation that Fannie Mae may not really worry about losing Bank of America's business as they will just be selling their loans to a different section of the U.S. controlled finance firms.

Fannie & Freddie Advanced $100 Million For Former Executive Lawsuits

According to a released report from the inspector general of the Federal Housing Administration, Fannie Mae and Freddie Mac have spent $100 million in legal bills defending former executives since 2004. The directors and officers of Fannie and Freddie had these payments coming to them as part of their benefit packages however it could be viewed in bad taste to countless taxpayers who have paid over $130 billion due to the housing crisis.

The main case that was evident in this report was that of three senior executives of Fannie Mae who reportedly falsely inflated the publically traded stock price of Fannie Mae and were advanced $99.4 million from Fannie Mae to cover their court representation.

The FHFA's inspector general, Steve Linick, has said that he wants to try and limit and keep control of the legal expenses allowable so this vast amount does not continue or repeat itself in the future.

 

 

 

Borrowers No Longer Want Adjustable Rate Mortgages?

Freddie Mac's Quarterly Product Transition Report was released this week and the one of the most staggering finds is that more than 95% of refinancing borrowers choose fixed-rate loans versus adjustable rate mortgages. This even took into consideration the loans that were initially set up as ARMs.

Some other interesting facts regarding this topic pulled from the report include:

• The amount of borrowers who choose to shorten their loan term was the highest since 2003
• Of the total borrowers paying off a 30 year fixed-rate loan, 43 percent reduced down to a 15-to 20-year loan
• Hybrid ARMs became much less popular with 58 percent of ARM borrowers switching to a fixed-rate loan

Further interesting statistics including the Freddie Mac House Pricing Index, the Adjustable Rate Mortgage Annual Survey and the Monthly Refinance and ARM shares can be found at
http://www.freddiemac.com/news/finance/

Deutsche Bank Sued Over $512 Million Worth of Mortgage Backed Securities

According to Bloomberg Businessweek, Deutsche Bank has recently become the new face of misrepresentation of mortgage securities in the court of law. In New York, Deustche Bank AG's Ace Securities was sued for fraud by Phoenix Light SF Ltd. yesterday regarding their alleged misrepresentation of $512 million worth of mortgage backed securities.

The case revolves around misrepresentation of underwriting guidelines which were used to issue the mortgage loans. Phoenix Light is seeking $300 million in damages for securities bought under alleged pretense notions of quality which they then later sold. Phoenix Light is accusing Ace Securities of being aware of the problems with their securities but continuing to include them in the offerings being sold anyways.

Spokespeople from Deutsche Bank claim the accusations are incorrect and they will be fighting the suit.

Mortgage Lender Settlement Annouced Today

The Justice Department has announce today that Bank of America, Wells Fargo, Citigroup, JPMorgan Chase and Ally Financial will pay a $26 billion settlement to American homeowners who have suffered from high interest rates or foreclosure. It is said that about $20 billion of the settlement money will be going to homeowners for mortgage debt reduction and lower rate refinances and about $1.5 billion will be given to previous homeowners who lost their homes to foreclosure between 2008 and 2011.

The banks have three years to distribute the money, therefore creating apprehension by experts of the actual boost this may have on the economy. The breakdown of money to be given by each bank is as followed:

• Bank of America - $11.8 billion plus an additional $1 billion for Federal Housing Administration loans
• Wells Fargo - $543 billion
• JPMorgan Chase - $5.3 billion
• Citigroup - $2.2 billion
• Ally- $310 million

      

New Moble Starter Kit Offered by The Real Estate Book

The Real Estate Book, leading publisher of real estate information in online and print, is noticing the importance of mobile device marketing within the real estate industry. They are now offering a Mobile Stater Kit for all real estate advertisements at no additional cost to the marketers.

The kit allows real estate agents to create their own mobile sites which enables their buyers and sellers to have access to properties, mortgage calculators, links to social media sites and easily accessible search functions.

The Mobile Starter Kit is the latest addition to The Real Estate Book's marketing campaigns for real estate agents which currently includes QR Codes, Text Codes and single property sites.

Facebook IPO To Cause Spike in Residential Real Estate?

Facebook just had a $5 billion initial public offering filing on Wednesday and some think it may effect California real estate. It is being compared to the 2004 public sharing of Google which made many people wealthy and now has stocks trading for $580 a share. Some real estate agents believe that just like with the Google public shares, Facebook's IPO will create wealth and furthermore cause the real estate market to rise. Google's public shares also created jobs which in return caused the company to purchase more land. Speculation is that Facebook's IPO could also create more jobs which could cause a spike in the local residential market.

Freddie Mac Betting on Homeowners?!

A story released by NPR and ProPublica shares information on Freddie Mac betting billions of dollars on homeowners not being able to refinance their mortgages at a lower rate. By Freddie Mac doing this, it is causing a stir of shock amongst industry insiders and homeowners alike. This is understandable as just in December, Freddie Mac's chief executive, Charles Halderman, said the company is "helping financially strapped families reduce their mortgage costs through refinancing their mortgages."

The investigation by NPR and Problica show a different story with public documents of Freddie Mac bringing in funds for the company by using mortgage securities during a time when homeowners in high interest rate loans were unable to refinance their mortgages. Speculations are that Freddie Mac, holding the power of the qualifying guidelines for refinancing, was keeping the restrictions tight so many homeowners could not gain the permission to refinancing, therefor allowing Freddie Mac to continue their financial gains.

Freddie Mac and the FHA continue to decline commenting; however, Freddie Mac has stated that their employees in charge of investments are "walled off" from those who deal with the guidelines of homeowners.

Bank of America Gives Help if Borrowers Stop Complaining

As reported by the Huffington Post, Bank of America's loan modification program is coming back into the eyes of the justice system. Bank of America is said to have offered mortgage assistance to customers only if they agreed to not make any derogatory statements and also remove any statements that were already posted through any form of online publication including Facebook and Twitter.

Arizona attorney general, Thomas Horne, investigated the accusations and found a dozen of cases where Bank of America waived borrower's debt and paid their fees upon the agreement that they stop complaining. It appears that in attempts to help their image, Bank of America is now suffering from more allegations that are adding to their already dwindled reputation.

Lawyers of Bank of America have said that borrowers are still able to obtain loan modifications without the above stipulations.

Charlotte-Six Charged in Mortgage Fraud Scheme

Charlotte area mortgage fraud "kickback" scheme hits the newstands this week. According to The Charlotte Observer, six different defendants were accused of working with the home building company Tara Properties to offer kickbacks to straw buyers which were never disclosed to the lenders involved.
During the height of activity that lead to the mortgage meltdown, between January of 2055 and February of 2008, this scheme resulted in more than $42 million in lending dollars and $5 million in kickbacks. Tara Properties offered kickbacks to the straw buyers at 15 percent of the homes sales price. Due to falsified documentation and unqualified straw borrowers, most of the purchased properties ended in foreclosure.

The defendants are being charged with mortgage fraud conspiracy and money laundring conspiracy. Some of the defendants include a licensed loan officer, a licensed real estate agent and a certified public accountant.

Former RE Broker Charged with 39 Counts of Fraudulent Activity Goes to Court Next Month

As reported by the Santa Cruz Sentinel, former real estate broker, Louisa Katrina Dubinsky, is scheduled to be sentenced next month regarding an initial charge of 39 counts of embezzlement, financial elder abuse and writing bad checks. It was during her time working as President of Vision Lending and Investment in 2007 when she was accused of stealing more than $500,000 from her clients. Her license was then revoked when it was found that her business was working with three trust funds which were short $187,000.

The initial hearing was held in September of 2011 when a former client's allegations were confirmed that Dubinsky was taking $3,000 a month for seven years to supposedly pay different lenders for the client's home loan but was actually keeping months worth of the payments. By the time is was brought to the client's attention they were unable to track down Dubinsky.

Dubinsky pleaded no contest last month and will now be coming back to court on February 8th, facing a  maximum of eight years in prison. Part of her plea agreement also includes paying restitution to some former clients and victims.

Fraudulent activity happens all to easy in the mortgage industry but has luckily been put mostly to a halt since new guidelines and laws have been placed after the mortgage crisis; however, it is always good to know how to stay on top of your mortgage payments and understand how to track every payment which is made. If you have any questions regarding which practices are correct, please contact us today at 704-892-5211.

PNC and US Bancorp Lead the New Mortgage Abuse Army

Today, PNC and US Bancorp shared with Reuters that they have set aside funds for mortgage related matters in exchange for immunity from lawsuits for improper foreclosures and bad mortgage origination practices. This newly proposed settlement, which has mostly targeted the big 5 lenders, orders banks to provide $20 to $25 billion in funding for troubled home loan borrowers and is predicted to help around one million people.

It has been said by US Bancorp CEO, Richard Davis, that this information regarding their mortgage abuse funds does not mean they have reached a final decision on the settlement. PNC and Bancorp were part of the group of 14 lenders which have been put under scrutiny regarding their lending practices but by them sharing they are looking ahead and setting aside funds for borrowers, this proves as hope for the industry, beyond the big five lenders.

RE Agents Get New Facebook Group

With the way the market has been the past few years, it has left many real estate agents holding onto the work they have and carefully allocating their money to bring in new work. Co-founder of The MLS App, Jimmy Mackin, knows this all to well so he decided to post on a Facebook group the question "What should I spend my money on?" He just posted this question yesterday and as of today, over 1,200 real estate agents and industry insiders have joined in with their ideas and suggestions. Check out the page HERE

Potential Game Changing Refi Program

Word has been spreading of a potential $1 trillion mortgage refinancing program geared to help boost the economy to be enacted by President Obama. Speculation of this program going underway has gained much notice by the stock market with bank stock losses turning around this afternoon. Jim Pethokoukis, a columnist at the American Enterprise Institute, released an article stating that this program is modeled from two economists from Columbia University, Glenn Hubbard and Christopher Mayer. The details of the program are said to be that all Fannie and Freddie mortgages that are current on their payments can be refinanced at 4.2 percent or less with no appraisal or income verification. This information is still speculation and not confirmed to be occurring.

The Mortgage Finance Act of 2011

Former real estate broker and current Senator of Georgia, Johnny Isakson, has shared a new finance act to transform the secondary market to the Dodd-Frank legislation. The Mortgage Finance Act of 2011 has some changes for the secondary market including:

• Eliminating Fannie Mae and Freddie Mac
• Creates a catastrophic fund in case of any future issues
• Full privatization within 10 years

The Act is endorsed by the Association of Realtors and willcontinue to keep a low 5 percent down payment which may become a problem with correlating to Dodd-Frank. To view the purpose and details of the Act, click HERE

Potential Bad News Ahead for MGIC

MGIC is the largest U.S. mortgage insurer, meaning they pay lenders when homeowners default on loans and when foreclosures do not gain the intended financial outcome. MGIC had put $200 million into a subsidiary in hopes of continuing their underwriting business proceeding their 90 percent drop at the end of 2006.
Since their capital expenditure, MGIC has dropped 6.2 percent and is anticipating a heavy decline in the future, therefore; MGIC is in discussion with Fannie Mae and the State of Wisconsin regarding their waiver expiration.