Tuesday, December 28, 2010
Thursday, December 23, 2010
Tuesday, December 7, 2010
Wednesday, October 13, 2010
Friday, October 8, 2010
Wednesday, October 6, 2010
Wednesday, September 15, 2010
Friday, September 10, 2010
Wednesday, August 18, 2010
Thursday, June 10, 2010
Overhall of Banking Industry Starts
A special U.S. Congressional Panel is preparing to hold it first public meeting today to begin merging competing bills from each chamber into what could become the biggest overhaul of the banking industry since the 1930s.
Several parts of the bills directly affect bank profits, while some parts of the bills could force structural changes at larger institutions involved in over-the-counter markets.
White House economic advisor, Paul Volcker, is quoted as saying "that sweeping legislation would be passed "in reasonable form" and would provide a basis for the other major countries to get together".
The House named its members to the committee on Wednesday, selecting some of the chamber's toughest critics of banks and the financial industry, which are increasing unpopular with the general public since the 2007-2009 financial crisis.
The hearing will certainly bring about heated discussion regarding the banking industry. More later.
Several parts of the bills directly affect bank profits, while some parts of the bills could force structural changes at larger institutions involved in over-the-counter markets.
White House economic advisor, Paul Volcker, is quoted as saying "that sweeping legislation would be passed "in reasonable form" and would provide a basis for the other major countries to get together".
The House named its members to the committee on Wednesday, selecting some of the chamber's toughest critics of banks and the financial industry, which are increasing unpopular with the general public since the 2007-2009 financial crisis.
The hearing will certainly bring about heated discussion regarding the banking industry. More later.
Tuesday, May 11, 2010
Fannie Mae needs $8.4 Billion More
The Wall Street Journal reported today that Fannie Mae has asked the U.S. government for an additional $8.4 billion in aid after posting an $11.5 billion loss for the first quarter of 2010, the latest sign that the bailout of the mortgage investor and its main rival, Freddie Mac, is likely to be the most expensive legacy of the U.S. housing-market bust.
The total price tag for Fannie and Freddie could exceed $145 billion, easily becoming the costliest element of the government's rescue of the financial system.
Leading Republican lawmakers are pushing for an amendment to the legislation to overhaul financial regulation that would wind down the government controlled mortgage finance giants.
The amendment has been proposed by Republican Senators, including John McCain (Ariz.)
and calls for the government to end its control of the companies within 2 years.
Senator McCain has been quoted as saying" Fannie Mae and Freddie Mac" are synonymous with mismanagement and waste and have become the face of too big to fail. The time has come to end Fannie Mae and Freddie Mac's taxpayer-backed free ride and require them to operate on a level playing field.
The total price tag for Fannie and Freddie could exceed $145 billion, easily becoming the costliest element of the government's rescue of the financial system.
Leading Republican lawmakers are pushing for an amendment to the legislation to overhaul financial regulation that would wind down the government controlled mortgage finance giants.
The amendment has been proposed by Republican Senators, including John McCain (Ariz.)
and calls for the government to end its control of the companies within 2 years.
Senator McCain has been quoted as saying" Fannie Mae and Freddie Mac" are synonymous with mismanagement and waste and have become the face of too big to fail. The time has come to end Fannie Mae and Freddie Mac's taxpayer-backed free ride and require them to operate on a level playing field.
Wednesday, May 5, 2010
Considering a Tax Deferred Exchange "1031 Exchange"
A 1031 exchange, commonly referred to as "tax deferred exchange", is a simple strategy of selling one property, that's qualified and then proceeding with the purchase of another property, that also qualifies, within certain time frames established by the IRS.
The "1031 exchange" is unique because is allows the transaction to be treated as an exchange of one property for another and not just as a simple sale. It is this difference (exchange vs. buying and selling) which allows the taxpayer to qualify for a deferred gain treatment and in the end defer capital gain taxes.
To qualify, the taxpayer must sell and purchase "like kind" property, which generally is real estate (and must be property held for the production of income) and comply with 2 specific time lines established by the IRS.
First the taxpayer must identify the replacement property within 45 days from the day of selling the first property (referred to as the relinquished property).
Second, the taxpayer must close on and receive the replacement property within 180 days after the date on which the taxpayer transfers or closes on the sale of the relinguished property.
If you think this type of transaction might benefit you, then it is important that you check with your attorney or tax advisor before electing to proceed with a tax deferred exchange. In addition, it is important to chose a reputable qualified intermediary to assist with the transaction.
First Nebraska Title & Escrow Co., can provide valuable services as a Qualified Intermediary and is available to answer your questions relating to tax deferred exchanges.
The "1031 exchange" is unique because is allows the transaction to be treated as an exchange of one property for another and not just as a simple sale. It is this difference (exchange vs. buying and selling) which allows the taxpayer to qualify for a deferred gain treatment and in the end defer capital gain taxes.
To qualify, the taxpayer must sell and purchase "like kind" property, which generally is real estate (and must be property held for the production of income) and comply with 2 specific time lines established by the IRS.
First the taxpayer must identify the replacement property within 45 days from the day of selling the first property (referred to as the relinquished property).
Second, the taxpayer must close on and receive the replacement property within 180 days after the date on which the taxpayer transfers or closes on the sale of the relinguished property.
If you think this type of transaction might benefit you, then it is important that you check with your attorney or tax advisor before electing to proceed with a tax deferred exchange. In addition, it is important to chose a reputable qualified intermediary to assist with the transaction.
First Nebraska Title & Escrow Co., can provide valuable services as a Qualified Intermediary and is available to answer your questions relating to tax deferred exchanges.
Tuesday, April 20, 2010
Tax Credit Deadline Approaches
Here's what you need to do to get the Home Buyer Tax Credit:
1. Close on your home purchase between November 7, 2009 and April 30, 2010 or have a binding written purchase agreement in place by April 30, 2010 with a closing date of no later than June 30, 2010.
2. Decide whether to:
a. Apply the credit to your 2009 tax return filed on or before April 15, 2010
or file an amended return; or
b. Apply the tax credit on your 2010 return, filed on or before April 15, 2011.
c. Attach a copy of your HUD-1 settlement statement.
If you are shopping for a new home and anticipating entering into a purchase agreement please be aware of the April 30th deadline.
1. Close on your home purchase between November 7, 2009 and April 30, 2010 or have a binding written purchase agreement in place by April 30, 2010 with a closing date of no later than June 30, 2010.
2. Decide whether to:
a. Apply the credit to your 2009 tax return filed on or before April 15, 2010
or file an amended return; or
b. Apply the tax credit on your 2010 return, filed on or before April 15, 2011.
c. Attach a copy of your HUD-1 settlement statement.
If you are shopping for a new home and anticipating entering into a purchase agreement please be aware of the April 30th deadline.
Friday, April 16, 2010
Wednesday, April 14, 2010
Nebraska Bankruptcy Court Voids Bank's Liens Because of Disqualified Notary
A somewhat surprising, yet costly ruling was recently issued by the United States Bankruptcy Court for the District of Nebraska.
On March 15, 2010 the Nebraska Bankruptcy Court voided 2 deeds of trust, collectively in the amount of $7,500,000.00.
In this case 2 separate deeds of trust, one for $7,745,000.00, later reduced by modification to $6,000,000.00 and a second for $1,000,000.00 were signed by two separate individuals as members of Borrower, a Nebraska limited liability company. Each deed of trust and the modification were notarized by an individual who was the brother-in-law of one of the members.
The Bankruptcy Court found, that as brother-in-law, the notary was disqualified from notarizing the signature of the member who was related to the notary. The Court cited Neb. Rev. State. Section 64-105.01 which provides that “a notary public is disqualified from performing a notarial act as authorized by Charter 64, articles 1 and 2, if the notary is a spouse, ancestor, descendant, or sibling of the principal, including in-law, step, or half relatives.
It is not known whether this case has been or will be appealed, but a valuable lesson was learned the hard way and a reminder that you always need to be wary of ever notarizing a relatives signature. The results, as in this case could be significant.
On March 15, 2010 the Nebraska Bankruptcy Court voided 2 deeds of trust, collectively in the amount of $7,500,000.00.
In this case 2 separate deeds of trust, one for $7,745,000.00, later reduced by modification to $6,000,000.00 and a second for $1,000,000.00 were signed by two separate individuals as members of Borrower, a Nebraska limited liability company. Each deed of trust and the modification were notarized by an individual who was the brother-in-law of one of the members.
The Bankruptcy Court found, that as brother-in-law, the notary was disqualified from notarizing the signature of the member who was related to the notary. The Court cited Neb. Rev. State. Section 64-105.01 which provides that “a notary public is disqualified from performing a notarial act as authorized by Charter 64, articles 1 and 2, if the notary is a spouse, ancestor, descendant, or sibling of the principal, including in-law, step, or half relatives.
It is not known whether this case has been or will be appealed, but a valuable lesson was learned the hard way and a reminder that you always need to be wary of ever notarizing a relatives signature. The results, as in this case could be significant.
Thursday, April 8, 2010
How to Handle Transfer Taxes on the New GFE and HUD-1
HUD representatives recently indicated how real estate transfer taxes should be disclosed on the new GFE and their answer caught some lenders and settlement services providers by surprise.
In those jurisdictions, where seller by custom and practice or by contract, pays a portion or all of the transfer taxes, those taxes need to be disclosed in Box 8 of the new GFE and then place that amount in the buyer's column on line 1203 of the HUD-1, with an appropriate credit on line 204 to the buyer (to reflect the portion paid by the seller) and a debit on line 504 against the seller for that amount.
Good news is, Nebraska is not one of these jurisdictions. In Nebraska, the obligation to pay transfer taxes is placed on the seller by state statute, specifically Section 76-901.
HUD says you DO NOT need to disclose the transfer taxes on the GFE in those states where it is seller's statutory obligation to pay transfer taxes.
Bottom line, in Nebraska the lender need not disclose transfer taxes on the GFE. If you are in any other state, you need to determine how your state treats payment of transfer taxes.
In those jurisdictions, where seller by custom and practice or by contract, pays a portion or all of the transfer taxes, those taxes need to be disclosed in Box 8 of the new GFE and then place that amount in the buyer's column on line 1203 of the HUD-1, with an appropriate credit on line 204 to the buyer (to reflect the portion paid by the seller) and a debit on line 504 against the seller for that amount.
Good news is, Nebraska is not one of these jurisdictions. In Nebraska, the obligation to pay transfer taxes is placed on the seller by state statute, specifically Section 76-901.
HUD says you DO NOT need to disclose the transfer taxes on the GFE in those states where it is seller's statutory obligation to pay transfer taxes.
Bottom line, in Nebraska the lender need not disclose transfer taxes on the GFE. If you are in any other state, you need to determine how your state treats payment of transfer taxes.
Tuesday, April 6, 2010
Home Sales Rise in February
According to The New York Times, the housing market showed a rare sign of strength in February. Pending home sales were up 8.2 percent over the previous month.
Economists attributed the increase to the approaching expiration of the government tax credit and an influx of foreclosed homes, which are traditionally offered at bargain prices.
Economists went on to say "they believe sales will slowly pick up and move decisively higher in 2011.
For more on this article go to nytimes.com
Economists attributed the increase to the approaching expiration of the government tax credit and an influx of foreclosed homes, which are traditionally offered at bargain prices.
Economists went on to say "they believe sales will slowly pick up and move decisively higher in 2011.
For more on this article go to nytimes.com
Monday, April 5, 2010
According to CNN Money, The new Home Affordable Foreclosure Alternatives program provides for borrowers to earn a $3,000.00 " relocation incentive" and servicers will get $1,500.00 for handling a short sale.
Investors who own the mortgage note will get $2,000.00 in exchange for sharing proceeds of the short sale with second lien holders. Second lien holders will then receive $6,000.00 for releasing their claims.
This should all help to reduce the time it takes to execute a sale which is currently averaging 88 days.
Investors who own the mortgage note will get $2,000.00 in exchange for sharing proceeds of the short sale with second lien holders. Second lien holders will then receive $6,000.00 for releasing their claims.
This should all help to reduce the time it takes to execute a sale which is currently averaging 88 days.
Wednesday, March 31, 2010
Tuesday, March 30, 2010
More Bank Failures
Over the past week, state and federal regulators shutdown 4 failing banks in Georgia, Arizona and perhaps surprisingly, Key West Florida. The closures bring the number of failed banks to 41 for the year.
In 2009 there were 140 bank failures, resulting in a loss of more than $36 billion for the Federal Deposit Insurance Corporation.
In 2009 there were 140 bank failures, resulting in a loss of more than $36 billion for the Federal Deposit Insurance Corporation.
Foreclosure Plague: It's Spreading
When you think of foreclosures and the title for the worst foreclosure rate in the country you usually think of Las Vegas. However, a recent article in CNNMoney.com discloses some starling statistics and one of the top five cities reporting foreclosures is not one you would usually think of.
The biggest increase was reported in McAllen, Texas with a 1,197% increase, followed by Burlington, Vermont with a 400% increase.
The surprise was Lincoln, Nebraska at 3rd place with a 240% increase.
For more on this article and an interesting insight on the increasing popularity of "short sales versus foreclosures", go to CNNMoney.com
The biggest increase was reported in McAllen, Texas with a 1,197% increase, followed by Burlington, Vermont with a 400% increase.
The surprise was Lincoln, Nebraska at 3rd place with a 240% increase.
For more on this article and an interesting insight on the increasing popularity of "short sales versus foreclosures", go to CNNMoney.com
Thursday, March 25, 2010
Investors With Cash are Buying More Homes
In a recent USA Today article it was reported that more home buyers are purchasing properties with cash, largely to avoid paying interest charges on loans and get a higher return on their investment.
The National Association of Realtors reported homes involving all-cash jumped from 18% in January of 2009 to 26% in January of 2010. Of this group, buyers identified solely as "investors" jumped to 17% in January, up from 15% in December and 12% in November.
Mark Fleming, chief economist at First American CoreLogic is quoted in the article as saying "we bottomed out in 2008 and in late 2009 prices stabilized and investors have returned".
As a result many investors see real estate prices as having no where to go but up. All-cash offers give buyers a competitive edge on rival offers that are dependent on financing and cash deals can close faster.
In addition, many prime-rate borrowers bought more expensive homes that have now gone into foreclosure. These home aren't just the 1 bedroom homes in need of high maintenance, but now include split-level and multi-bedroom homes that will appreciate to a higher value.
Will this trend continue? As long as the return on investment continues to outpace more traditional investments there is no reason to believe it won't.
The National Association of Realtors reported homes involving all-cash jumped from 18% in January of 2009 to 26% in January of 2010. Of this group, buyers identified solely as "investors" jumped to 17% in January, up from 15% in December and 12% in November.
Mark Fleming, chief economist at First American CoreLogic is quoted in the article as saying "we bottomed out in 2008 and in late 2009 prices stabilized and investors have returned".
As a result many investors see real estate prices as having no where to go but up. All-cash offers give buyers a competitive edge on rival offers that are dependent on financing and cash deals can close faster.
In addition, many prime-rate borrowers bought more expensive homes that have now gone into foreclosure. These home aren't just the 1 bedroom homes in need of high maintenance, but now include split-level and multi-bedroom homes that will appreciate to a higher value.
Will this trend continue? As long as the return on investment continues to outpace more traditional investments there is no reason to believe it won't.
Monday, March 22, 2010
HUD looks at Administrative Fees Charged by Real Estate Agents
HUD is currently looking at whether it is appropriate for real estate agents to charge hundreds of dollars as a separate charge called "Broker Administrative Fees" on top of the flat commission they are charging sellers.
During the last several years, many realtors began adding additional fees onto their commissions to generate higher revenues. These fees came with a variety of names, usually called "Administrative Fees" or "Broker Admin. Fees" and were charged to sellers and often times buyers, payable at closing.
Last year a U.S. District Court came down hard on these type of fees ruling that so called "add-on" fees violated federal law when there were no specific services performed to justify the extra cost to the seller and buyer.
HUD is now looking at the legality of these fees, especially in view of the new RESPA regulations which became effective January 1, 2010. The revised HUD-1 has line items where the commission charges can be listed. HUD has taken the position that if the total commissions exceed those quoted on the realtor's listing agreement, then HUD would have the power to review the extra charges. If little or no services are performed to support the "add-on" fees then HUD would treat the additional fees as a RESPA violation.
Bottom line, as a consumer ask about all compensation and fees in any transaction. As a broker, make sure you can justify the additional fees and make sure they are quoted in the listing agreement and you can demonstrate you actually performed services to support these administrative fees.
During the last several years, many realtors began adding additional fees onto their commissions to generate higher revenues. These fees came with a variety of names, usually called "Administrative Fees" or "Broker Admin. Fees" and were charged to sellers and often times buyers, payable at closing.
Last year a U.S. District Court came down hard on these type of fees ruling that so called "add-on" fees violated federal law when there were no specific services performed to justify the extra cost to the seller and buyer.
HUD is now looking at the legality of these fees, especially in view of the new RESPA regulations which became effective January 1, 2010. The revised HUD-1 has line items where the commission charges can be listed. HUD has taken the position that if the total commissions exceed those quoted on the realtor's listing agreement, then HUD would have the power to review the extra charges. If little or no services are performed to support the "add-on" fees then HUD would treat the additional fees as a RESPA violation.
Bottom line, as a consumer ask about all compensation and fees in any transaction. As a broker, make sure you can justify the additional fees and make sure they are quoted in the listing agreement and you can demonstrate you actually performed services to support these administrative fees.
Friday, March 19, 2010
Short Sales - Faster process on the horizon?
A new program to speed up short sales goes into effect April 5. The word is that the federal government will begin to provide financial incentives to lenders to conduct more short sales.
The rules will help standardize the currently lengthy process a submission takes once an offer is made. This should help in the negotiation process for potential buyers.
Read more in the Wall Street Journal at http://online.wsj.com
The rules will help standardize the currently lengthy process a submission takes once an offer is made. This should help in the negotiation process for potential buyers.
Read more in the Wall Street Journal at http://online.wsj.com
Friday, March 5, 2010
Wednesday, March 3, 2010
Make your life easier get your guaranteed GFE Rate Quote
First Nebraska Title now has both Basic and Homeowner's Policy rate quotes available through the use of our online calculators. Convenient, easy, accurate rate quotes are available via the web to be accessed anytime, anywhere.
Just click on calculators and submit your request and you will receive an emailed rate quote for your file. We provide guaranteed zero tolerance on all quotes received from our calculators for title and lender's title insurance Box 4 and Box 5 of the GFE when you use First Nebraska Title as your title provider.
Check it out today by visiting our website!
Just click on calculators and submit your request and you will receive an emailed rate quote for your file. We provide guaranteed zero tolerance on all quotes received from our calculators for title and lender's title insurance Box 4 and Box 5 of the GFE when you use First Nebraska Title as your title provider.
Check it out today by visiting our website!
Homeowner's Policy for Title Insurance
Is there a choice when it comes to title insurance coverage?
Most buyers and in many cases realtors aren't aware that there are choices when it comes to deciding what type of title insurance coverage is best for buyers.
Title insurance has evolved and the real estate market, particularly realtors, need to be aware of the "Homeowners Policy of Title Insurance" offered by First Nebraska Title Company.
The Homeowners Policy is designed to provide optimum title insurance and ultimately more peace of mind. It can cover additional scenarios for losses not previously covered with Basic title insurance.
Visit our website for the full article or call today for more information! Get a rate quote at http://www.firstnebraskatitle.com/
Most buyers and in many cases realtors aren't aware that there are choices when it comes to deciding what type of title insurance coverage is best for buyers.
Title insurance has evolved and the real estate market, particularly realtors, need to be aware of the "Homeowners Policy of Title Insurance" offered by First Nebraska Title Company.
The Homeowners Policy is designed to provide optimum title insurance and ultimately more peace of mind. It can cover additional scenarios for losses not previously covered with Basic title insurance.
Visit our website for the full article or call today for more information! Get a rate quote at http://www.firstnebraskatitle.com/
Wednesday, January 6, 2010
RESPA UPDATES
How is your grasp of the new RESPA Ruling? Many lenders are wrapping their arms around the new changes affecting lenders and settlement agents alike. Check out my RESPA archives for more information on continued updates to the Ruling and HOT TOPIC Q & A's from HUD's own FAQ's.
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