Legislation to give homeowners who are on the brink of losing their home a 90-day period to work out a payment plan with their lending institution has been signed by the Governor. House Bills 4453-4455, now
Public Acts 29, 30, and 31 of 2009, would allow consumers who are on the brink of foreclosure a 90-day period to attempt a loan modification plan.
Further provisions of the legislation would require the lending institution to provide the borrower with written notice of the reason for default, information on the mortgage holder including the name, address, phone number, and an assigned contact with the mortgage holder. If an agreement is reached with the mortgage holder, the loan will not be foreclosed upon if the borrower is able to abide by the terms of the agreement. Additionally, language was reinserted into the bill that gives homeowners the right to take their case to court if a lender does not cooperate on a loan modification plan. This legislation further stipulates that a borrower would not qualify for this program if they qualify for President Obama’s Federal Loan Modification Program. While the MAR fully supports keeping homeowners in their homes, the MAR believes that the judicial aspect of this legislation that was reinserted may clog up the judicial system, thus “dragging” the process out and increasing costs. However, given the increasing number of foreclosures in this state, these bills are a big step in keeping Michigan citizens in their homes.
Please visit
http://www.mirealtors.com/ for additional legislative news.
News from NAR: HUD: Homebuyer Tax Credit Loans Still on Track
News reports that the federal government is backing away from its plan to permit eligible borrowers to monetize the first-time homebuyer tax credit are off the mark, a spokesperson for the U.S. Department of Housing and Urban Development says.
"The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site," Lemar Wooley, a HUD spokesperson, told REALTOR® magazine Wednesday afternoon.
Under the guidance that's under development, state agencies and other HUD-approved entities would be able to provide short-term bridge loans that households could use to help with their downpayment. The loans would be repaid with the proceeds from the households' $8000 federal tax credit.
The loans were announced on the opening day of NAR's 2009 Midyear Legislative Meetings in Washington, D.C. In his announcement, HUD Secretary Shaun Donovan said guidance would be issued shortly.
When the guidance is released, it is expected to cover eligible lenders and set parameters for loan terms and repayment. We will continue to keep you informed of any further updates.
Facebook and Twitter are quickly becoming the easiest ways to stay connected with friends, colleagues and companies. When looking for the latest news on Convention planning, there is no better way, then to connect socially on Facebook and Twitter! From the latest speaker additions, to schedule of event changes, new CE approvals, to hotel and area information, be in the know, as it’s happening!
For Facebook users, Become a Fan of the 2009 MAR Convention & Expo Facebook PageFor Twitter users, Start Following the 2009 MAR Convention & Expo
Facebook is also a great way to invite your peers to join you at convention. Let others know you are attending in your status updates, or post the link to your profile. If “tweeting” about Convention, don’t forget to include MAR’s hashtag #marconv09.
Also, stay connected with
Convention Chatter, the 2009 MAR Convention & Expo Blog, with Events Manager, Jodie Cady. You can also view the blog entries, on the Facebook Fan Page, and leave a comment for feedback.
Don’t forget to Register Early and Save!
Register Online Today!
MAR is excited to announce the launch of the REALTOR® Focus section on the MAR Web site. The section will highlight recent member activities, and accomplishments on a monthly basis.
If you, or a colleague, have been featured in a local or national news story, been featured on a TV show, or are news worthy in other ways, please send the story to
ctrzos@mirealtors.com. MAR appreciates your feedback, and looks forward to honoring and showcasing members who continue to contribute to the real estate industry.
Check out MAR’s REALTOR® Focus
MAR is proud to announce the launch of the
Foreclosure 101 Web site. Part of the Michigan Initiative, to help prevent, respond and raise awareness to the issue of Foreclosure, the Web site will be a useful tool for Consumers and REALTORS® alike. Included on the site are:
• Foreclosure 101 Resources
This section of the site includes resources, such as flyers, brochures, and links that will be helpful for those in foreclosure, or nearing a foreclosure situation. REALTORS® can download, print, or distribute the resources to their clients in need, or direct clients to the site.
• NAR/MAR/Local Prevention and Response Programs
This section of the site explains how the Michigan Initiative team has developed a comprehensive toolkit of resources to help members address the challenges of foreclosures, as well as facilitate distressed and short sales to the benefit of the buyers, sellers, lenders and communities.
The site will also include a list of Regional Field Sessions, that are being scheduled around the State of Michigan.
Fee Charged by Brokerage Violates RESPA
A federal appellate court has evaluated whether a transaction fee that a brokerage firm charged violated RESPA. To read an analysis of the opinion from NAR's General Counsel, click here.
Vicki Busby ("Buyer") purchased a home using a federally insured loan. JRHBW Realty, Inc. d/b/a RealtySouth ("Brokerage") represented the Buyer in the transaction. The Brokerage charged the Buyer a $149 "Administrative Brokerage Commission" ("Fee"), in addition to receiving a commission paid by the Seller. The Brokerage charges all of its clients the Fee, regardless of whether the client is a purchaser or seller.
Read More...Price Increase or Unearned Fee? How to Protect Your Bottom Line
By: Laurie Janik, NAR General Counsel
A federal district court recently ruled in Busby v. JRHBW Realty, Inc. d/b/a RealtySouth that an administrative brokerage fee ("ABC Fee") of $149.00 paid by a home buyer to the brokerage firm that represented her was not sufficiently related to any specific settlement service performed for her benefit, resulting in a violation of Section 8(b) of the Real Estate Settlement Procedures Act ("RESPA"). Section 8(b) prohibits charging for "real estate settlement services" unless the fee charged is for "services actually performed." Click
here to read a summary of the court's decision.
The court found that the ABC Fee represented an additional charge to the buyer to defray the overall costs of the brokerage services she received, including the broker's overhead and administrative costs. However, because the ABC Fee was separately itemized on the settlement statement from the percentage brokerage commission, and not specifically justified as compensation for other discrete "real estate settlement services" provided, the court viewed it as a duplication of the percentage commission charges, thereby rendering it an unearned fee in violation of RESPA.
Read More...
The award winning, Michigan REALTOR® magazine is pleased to offer more advertising options. In addition to its display advertiser opportunities, the magazine will feature the Market Place where for as little as $200 members can place a business card sized ad. You can place an ad to gain referrals, promote your services, etc. This is a great way to get your name in front of over 23,000 real estate professionals across the state. MAR is currently taking reservations for its August issue. For more information, or to place your ad contact Joe Kras at 800.454.7842 or
jkras@mirealtors.com. Hurry, August issue ad deadline is June 16th.
Learn more
CAS specializes in dispute resolution involving residential real estate and has established a preeminent position as the principal dispute settlement organization utilized by state REALTORS®, home warranty companies, home inspectors, and construction companies. CAS staff has administered over 75,000 disputes to a fair, prompt, and inexpensive resolution.
CAS has a statewide panel of trained and highly qualified arbitrators, many of whom have in excess of 10 years experience. CAS supports its arbitrators with periodic training, a highly automated case management system and case administrators available to guide the parties through the process.
Click here to visit CAS's Web site for more informationView all MAR Edge Programs & Benefits Here