Legal and Regulatory - St Louis Real Estate News

What is the difference between the interest rate and the A.P.R.?; St Louis Mortgage Watch

By Robert Fishel, on October 13th, 2010

You’ll see an interest rate and an Annual Percentage Rate (A.P.R.) for each mortgage loan you see advertised. The easy answer to “why” is that federal law requires the lender to tell you both.

The A.P.R. is a tool for comparing different loans, which will include different interest rates but also different points and other terms. The A.P.R. is designed to represent the “true cost of a loan” to the borrower, expressed in the form of a yearly rate. This way, lenders can’t “hide” fees and upfront costs behind low advertised rates.

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Wall Street Reform Emergency Homeowners Loan Program (EHLP) Update

By Dennis Norman, on October 12th, 2010

Dennis Norman

The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law by President Obama in July,called for HUD to administer and oversee a $1 billion Emergency Homeowners Loan Program (EHLP), to provide assistance, for up to 24 months, to homeowners who are at risk of foreclosure on their home as a result of a substantial reduction in income due to “involuntary unemployment, underemployment, or a medical condition”. This program will be available to borrowers in 32 states, those states that did not receive other funding under the Treasury Departments “Hardest Hit Housing Fund” program.

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REALTORS Rally to promote a YES vote on Amendment 3

By Dennis Norman, on October 1st, 2010

Dennis Norman

I just returned from the Lake of the Ozarks after attending business meetings for the Missouri Association of REALTORS (MAR) which included an update on AMENDMENT 3, the effort backed by MAR to prevent double taxation on Real Estate in Missouri. The “update” was more like a football rally, complete with “cheerleaders” and all and, while the fanfare was a little over the top for me, I was thrilled to see so much enthusiasm by REALTORS from across the state over this issue.

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FHA Changes Mortgage Insurance Rates-less up front cost but higher payments; St Louis Mortgage Watch

By Robert Fishel, on September 15th, 2010

New regulations signed into law by the President allow HUD to increase the amount of premiums charged for FHA single family housing mortgage insurance programs, however lower that actual up-front cost paid by borrowers.

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H.R. 4173; The Dodd-Frank Wall Street Reform and what it means to appraisers

By Frank Gregoire, on September 13th, 2010

Frank Gregoire

My world was much different in the late 1980’s. Although I was in the real estate business and the real estate appraisal profession for a decade, political activity did not interest me. Here at Gregoire & Gregoire, we had already been using a networked mini-computer for appraisal reporting since 1983, but I did not have an email account or address. I did not surf the web. Our clients were savings and loan associations, FHA lenders, loan discount companies (purchasers of privately originated first and second mortgages), real estate brokers, and several lawyers. All our research was Continue Reading →

Attorney Charged in Property Mortgage Scam

By News Desk, on September 12th, 2010

A Massachusetts attorney, Michael R. Anderson, 41, of Framingham, was charged last week in federal court with wire fraud, bank fraud, and money laundering in connection with a multi-year, multi-property mortgage fraud scheme in Dorchester and Roxbury. United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of Internal Revenue Service, Criminal Investigation – Boston Field Division, announced today that the defendant was charged in an Information with 16 counts of wire fraud, nine counts of bank fraud, and two counts Continue Reading →

North Carolina Real Estate Speculator Pleads Guilty to Bid Rigging in Real Estate Foreclosure Auctions

By News Desk, on September 11th, 2010

A Raleigh, N.C., real estate speculator pleaded guilty to conspiring to rig bids for public real estate foreclosure auctions held in multiple counties in eastern North Carolina, the Department of Justice announced today.

Christopher J. Deans pleaded guilty yesterday in U.S. District Court in Greenville, N.C., for participating in a conspiracy to rig bids during the real estate foreclosure auction process in eastern North Carolina from at least as early as April 2003 until at least April 2005. The primary purpose of the conspiracy was to suppress and eliminate competitive bidding on foreclosed properties and obtain selected real estate Continue Reading →

New Rule Proposed to Protect Seniors Obtaining Reverse Mortgages

By Dennis Norman, on September 3rd, 2010

Dennis Norman

Reverse mortgages have become increasingly popular over the past few years with seniors that find themselves with a large amount of equity in their home, but short on cash, or struggling to pay for the upkeep of the home, property taxes, insurance or other living expenses. A reverse mortgage allows people in that situation to pull the equity from their home in a lump sum, monthly payments or just as they need it.

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Carnahan files appeal to stop effort to prevent double taxation in Missouri

By Dennis Norman, on September 1st, 2010

Dennis Norman

UPDATE 9/03/2010 -Good News! I’m waiting for confirmation from the Secretary of State’s office, but I have been told that the Secretary of State has decided to drop the appeal and allow this issue to move forward to the voters in November! A huge victory for Missouri property owners! – end of update.

Yesterday I wrote about a Cole County Judge ruling against the Missouri Secretary of State and in favor a group working to prevent double taxation, by means of a transfer tax or fee on real estate, in Missouri clearing the way to take Continue Reading →

Court rules in favor of group working to prevent transfer tax

By Dennis Norman, on August 31st, 2010

Dennis Norman

Earlier this month I wrote about a set-back in an effort to give Missourian’s a an opportunity in November to prevent the possibility of double taxation by voting to pass a constitutional amendment prohibiting transfer taxes or fees on the transfer of real estate. The effort, which had the full support and backing of the Missouri Association of REALTORS, hit a road block when the Secretary of State’s office did not certify that enough signatures were obtained to put the issue on the ballot in November.

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New Rules for Mortgage Transfers

By Dennis Norman, on August 27th, 2010

Dennis Norman

Home mortgages are often sold or assigned, sometimes even right after the origination of the loan and, as a result, borrowers find themselves not knowing who their current lender is or how to contact their lender. This issue was addressed back in May 2009, as part of the Helping Families Save Their Homes Act, lenders that purchased home mortgages were required to provide disclosures in writing to the borrower within 30 days.

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7 Key Questions To Ask Your Lender When Getting a Mortgage

By Dennis Norman, on August 26th, 2010

Dennis Norman

Before you decide on a mortgage make sure you fully understand all the terms of the loan and make sure you know what you are getting yourself in for. Some home mortgages have features that may be risky and make it difficult for you to make your payments in the future. Be sure that you understand the loan terms, the risks and all the costs of the loan you are getting. To help you, below are 7 key questions to ask your lender about your mortgage BEFORE you accept a loan.

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New Rules Announced to Protect Mortgage Borrowers

By Dennis Norman, on August 25th, 2010

Dennis Norman

Over the past couple of years lawsuits have been filed against several lenders over “yield spread premiums” that were paid by the lenders to mortgage brokers originating loans on their behalf. These suits brought a lot of attention to a common practice in the mortgage industry which was to compensate the companies (or loan officers) originating loans based upon the rate and points charged to the borrower. There have been numerous debates on the topic and I’m staying out of it, however, last week the Federal Reserve announced new rules that will go in effect on Continue Reading →

Help for unemployed homeowners facing foreclosure

By Dennis Norman, on August 24th, 2010

Dennis Norman

The U.S. Department of the Treasury has announced yet another new plan to help homeowners avoid foreclosure. This plan targets homeowners that are struggling with unemployment and offers two foreclosure-prevention programs to help them.

The first program will be through the existing Housing Finance Agency (HFA) Innovation Fund for the Hardest Hit Housing Markets (the Hardest Hit Fund). Through this program the U.S. Department of the Treasury will make $2 billion of additional assistance available for HFA programs for homeowners struggling to make their mortgage payments due to unemployment.

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Missouri is Ninth Least Expensive State to Close on a Home

By Dennis Norman, on August 19th, 2010

Dennis Norman

A new study released by Bankrate, Inc. shows that the costs associated with buying a home are on the rise. Bankrate’s 2010 Closing Costs Survey states the average origination and title fees on a $200,000 mortgage this year totaled $3,741, up 37 percent from $2,732 in 2009.

The good news for us Missourians is that our state had the ninth LOWEST costs associated with buying a home. Missouri’s average cost is $3,356 which is over 10 percent below the national average. New York, with average costs of $5,623, had the highest costs in the nation.

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Zweifel calls for $127 million housing package for Missourians suffering from mental illness

By News Desk, on August 18th, 2010

State Treasurer Clint Zweifel today called on the Missouri Housing Development Commission to pass a multi-million dollar package to provide housing for Missourians suffering from a mental illness at its meeting on August 20 in Jefferson City. According to information from Treasurer Zweifel’s office, this plan would not require new spending, it would instead re-allocate $127 million (33 percent) of affordable housing resources for fiscal year 2011 to create housing that addresses mental illness and chronic homelessness issues.

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Leader of $200 Million Real Estate Investment Scam Arrested for Fraud

By News Desk, on August 14th, 2010

For Immediate Release August 12, 2010 United States Attorney’s Office District of New Jersey Contact: (973) 645-2888

Alleged Schemes Defrauded Investors in Multiple States and Abroad

NEWARK, NJ—Eliyahu Weinstein, aka “Eli Weinstein,” was arrested at his home this morning by federal agents on charges that he ran an investment fraud scheme causing losses of at least $200 million, U.S. Attorney Paul J. Fishman announced.

Weinstein, 35, of Lakewood, N.J., was charged with one count of bank fraud and one count of wire fraud in connection with the alleged scheme. Vladimir Siforov, 43, of Manalapan, N.J., was also charged with Continue Reading →

Private Transfer Fee Covenants Draw Fire From FHFA

By Dennis Norman, on August 12th, 2010

Dennis Norman

Today the Federal Housing Finance Agency announce proposed guidance that would prohibit Fannie Mae, Freddie Mac and the Federal Home Loan Banks from investing in mortgages with private transfer fee covenants. Considering that covers the lenders that originate, invest in or, or insure over 90 percent of the homes in the U.S. that pretty much puts the kibosh on financing a home with such a transfer fee.

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Countrywide VIP Loans To Fannie Mae Execs Are Under Investigation

By Dennis Norman, on August 6th, 2010

Dennis Norman

Fannie Mae, after losing $59.8 Billion in 2008 and then $74.4 Billion in 2009, reported yesterday that things are looking up and they lost only $1.2 Billion in the 2nd quarter of this year. This “good” news comes on the heels of documents being released two weeks ago showing that Countrywide made, what appears to be, some “below-market” mortgages to employees of Fannie Mae under a VIP loan program. There have been allegations that perhaps this was done in exchange for favors.

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Missouri REALTORS Face Setback but Vow to Keep Fighting Double Taxation

By Dennis Norman, on August 3rd, 2010

Dennis Norman

Previously I have written about an effort supported by the Missouri Association of REALTORS (MAR) to protect Missouri homeowners from facing double taxation through a real estate transfer tax by backing an effort to amend the Missouri Constitution to prohibit such a tax. Unfortunately, after Missouri citizens supported this initiative in overwhelming numbers, the effort was dealt a blow today when effort by the Missouri Secretary of State’s office announced its conclusion that the Vote “YES” To Stop Double Taxation amendment did not receive enough signatures of registered voters to qualify for the ballot.

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St. Louis Ranked 27th in 2009 For Mortgage Fraud Reports

By Dennis Norman, on July 30th, 2010

Dennis Norman

The Financial Crimes Enforcement Network (FinCen), a bureau of the U.S. Department of the Treasury, released their 2009 Mortgage Loan Fraud (MLF) study which found the number of mortgage fraud suspicious activity reports (SAR’s) filed in 2009 grew 4 percent compared to 2008.

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St. Louis Area Property To Be Sold At Tax Sales

By Dennis Norman, on July 19th, 2010

Dennis Norman

Next month St. Louis County and St. Charles County will hold their annual collector’s real property tax sale. The City of St. Louis holds their property tax sale on five separate dates beginning in May and running through October.

The general perception among many people is that at these sales property is sold for back-taxes owed, which is not entirely accurate. Under tax sales the property owner may in fact lose ownership of their property to the purchaser at the tax sale but, in St. Charles and St. Louis County, not until after a “redemption” period Continue Reading →

Financial Reform Bill Kills HVCC; Helps Appraisers

By Dennis Norman, on July 16th, 2010

Dennis Norman

07/17/10-Correction – This past week Congress passed H.R. 4173, the Wall Street Reform and Consumer Protection Act which is the most comprehensive reform to the banking industry since the Great Depression. The bill now awaits President Obamas signature which is expected to happen in the coming week.

This is a very comprehensive bill and I’m not sure even the Congressmen that passed it know everything that is in it, so I’m certainly not going to even pretend to know that much about the bill, but the one thing I do know is the Home Valuation Code Continue Reading →

House Passes Bill To Extend Closing Deadline For Home-Buyer Tax Credits

By Dennis Norman, on June 29th, 2010

Dennis Norman

UPDATE -July 2 – The President has signed the bill into law….It’s official, the deadline is September 30th to close..

UPDATE-July 1- GOOD NEWS! I Stand Corrected! Yesterday, before ending session, the Senate did PASS H.R. 5623 by Unanimous Consent…the bill now goes to the President for his signature and then will extend the closing date until September 30th…

UPDATE-June 30th-Today was the last day the Senate is in session before the 4th of July break and there was no action on this bill…..The Senate is now on recess until July 12th so nothing Continue Reading →

Is The Government Going to Push Us Into Another Housing Bust?

By Dennis Norman, on June 21st, 2010

Dennis Norman

UPDATE June 21, 2010- I said I would update this post after the proposed rules were published on the Federal Register with info on how to submit a comment -If you would like to comment, see the comment instructions in the Federal Register (I highlighted them) by clicking here -end of update.

June 4, 2010 Are they really going to repeat the same mistakes that helped cause this housing recession?

I say this because of a release I received from the Federal Housing Finance Agency (FHFA) last week announcing that the FHFA “has sent to the Continue Reading →

Mortgage Fraud Sweep Results in Almost 500 Arrests

By Dennis Norman, on June 18th, 2010

Dennis Norman

According to a press release issued by the FBI, nearly 500 people have been arrested in a nationwide mortgage fraud take-down as part of “Operation Stolen Dreams.” This operation was launched on March 1, 2010 and, according to the FBI, has lead to a total of 485 arrests, 330 convictions and the recovery of nearly $11 million. The FBI estimates that losses from a variety of fraud schemes are estimated to exceed $2 billion.

Operation Stolen Dreams is the government’s largest mortgage fraud take-down to date. But FBI Director Robert S. Mueller cautioned that there is Continue Reading →

Senate Passes Key Amendment to Extend Closing Deadline for Homebuyer Tax Credit

By Dennis Norman, on June 17th, 2010

Dennis Norman

UPDATE-June 30th-As the Willie Nelson song goes. “Turn out the lights, the party’s over”….well at least for now…Today, the last day the Senate is in session before the 4th of July break, there was yet another motion for cloture (to end debate) on H.R. 4213 and once again, like the previous 2 or 3 attempts, Continue Reading →

Closing Deadline For Homebuyer Tax Credits May Be Extended

By Dennis Norman, on June 15th, 2010

Dennis Norman

The deadline to purchase a home to qualify for the extended home-buyer tax credit was April 30th with a deadline of June 30, 2010 to close the sale. Since the deadline to purchase I have heard from many buyers with questions and concerns as they realize that, while they made the April 30th deadline to enter enter a contract to purchase a home, they are concerned that they may not make the June 30th deadline for closing, particularly those buying a new home, and want to know if there were any options available to them to Continue Reading →

FHA Reform Bill Passed by House; Good News for Homebuyers

By Dennis Norman, on June 11th, 2010

Dennis Norman

Yesterday the U.S. House of Representatives passed H.R. 5072, the FHA Reform Act of 2010 which is good news for home-buyers that may need to rely upon an FHA loan for a home purchase. The bill will still need to be passed by the Senate and then signed into law by the President, but a big first step toward this was taken by the House passing it.

Highlights of the bill that I think are important to home-buyers are:

The down-payment requirement for FHA loans will remain at 3.5 percent. There was an amendment to the Continue Reading →

Fannie Mae Issues Guidelines For HAFA Short-Sales and Deed-in-Lieu

By Dennis Norman, on June 1st, 2010

UPDATE- June 2, 2010: The National Association of REALTORS obtained answers from the Treasury Department on 3 common questions about HAFA:

agents are not permitted to rebate a portion of their commission to the buyer, sellers who are real estate agents must list their home for sale with another broker, not their own broker, and the incentive allowed for subordinate lien holders (6% of any one subordinate lien, up to a total of $6,000 for all subordinate liens) is a hard cap and may not be supplemented from any source.

Dennis Norman

In March I did an update on Continue Reading →