Michigan Association of Realtors

 

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Tuesday, July 6, 2010

 

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Good News from OFIR on Seller Financing and the Mortgage Loan Originator Act

The Michigan Office of Financial and Insurance (“OFIR”) has recently issued important and helpful answers to questions regarding the upcoming July 31st implementation of the Michigan Loan Originator Licensing Act (“Originator Act”). As many of you are aware, the Originator Act stems from a nationwide effort to crack down on mortgage fraud whereby Congress passed the Safe and Fair Enforcement for Mortgage Licensing Act (the “SAFE Act”). The SAFE Act requires states to establish uniform regulations and minimum licensing requirements for mortgage loan originators. As a result, Michigan passed the Originator Act.

Review of the Originator Act created immediate concern as to whether REALTORS® or their client/sellers would be subject to the Originator Act when a property is sold on land contract, purchase money mortgage or some other form of seller financing. However, OFIR’s interpretation and planned implementation of the Originator Act should go a long way in allaying REALTOR® concerns. While all parties continue to await an official statement from the Federal Department of Housing and Urban Development (“HUD”) regarding uniform interpretations and application of the specific provisions aimed at seller financing, OFIR has released the following discussion items as they prepare for the July 31st implementation. As you’ll see, the FAQ’s indicate that OFIR does not currently consider a land contract, as set forth in MCL 565.351 et seq., to be included in the definition of “Residential Mortgage Loan” as it is used in the Michigan Mortgage Loan Originator Licensing Act.

This is great news for Michigan real estate. However, MAR advocates guarded optimism until HUD comes back with a final rule, regulation, interpretation, or formal guidance of the Federal S.A.F.E. Act. In the continued absence of an official response from HUD, MAR will continue to keep members apprised of OFIR’S planned implementation and will distribute materials to help you and your clients best prepared for the July 31st implementation date in the coming weeks.

 

 

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 Congress Passes Tax Credit Closing Extension

After a close brush with the deadline, Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623). The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The legislation is designed to create a seamless extension the new closing deadline for eligible transactions is now September 30, 2010. There will be no gap between June 30 and the date the President signs the bill into law.

NAR worked closely with Congressional leaders on both sides of the aisle to enact this important legislation. Extending the Tax Credit Closing deadline will help provide additional stability to real estate markets across the nation.

For additional information on the extension, please visit http://naractioncenter.com/

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MAR Director Elections - Deadline to File - July 16th

Make a difference at MAR by participating with MAR's annual Director elections. As an essential part of the MAR team, the Board of Directors implement the visionary strategies that make the association tick, while building the foundation for constant improvements. These professional, engaged member volunteers ensure that MAR is the first place people think of for highly credible industry-related services and advocacy. Individuals wishing to seek candidacy must file with MAR by Friday, July 16, 2010. Interested in running? Contact Brian Westrin at 517.334.5558, or email him at bwestrin@mirealtors.com.

Click here for additional information and to view open districts

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Milliken Elected as 2011 MAR Treasurer

On Thursday, June 24 the Michigan Association of REALTORS® Board of Directors elected Bill Milliken, CCIM, CIPS to the 2011 Treasurer position. Milliken served on the Board of Directors, beginning in 2009, representing the Michigan Commercial Alliance of REALTORS®. He will officially take office on January 1, 2011. “The board, and association as a whole will benefit from such an experienced leader in real estate on the officer team,” remarked 2010 MAR President Bob Taylor after the election of Milliken.

Milliken began work in real estate in Ann Arbor in 1987, and served as a director of Republic Bancorp. Milliken Realty, which he formed in 1996, was named a Best of Michigan Business in 2008. Previously, he worked in Washington, D.C. for NASA and the U.S. Dept. of Justice. Bill was elected to the board of the CCIM Institute in 2006 where he has held numerous leadership positions. He was also a delegate on CCIM’s trade mission to China in 2006. Amongst many civic activities, he served as president of the Commercial Board of REALTORS®, board chair of the Ann Arbor Chamber of Commerce, and secretary of Artrain USA. He graduated from Colorado College.

“Bill has served on the MAR Board with distinction and I look forward to his Leadership as an Officer on the Board. He brings tremendous background and knowledge of the commercial market in Michigan, which has helped shape public policy in this State. In addition to serving on the Board of Directors, Bill also serves on the highly sought after MAR Public Policy Committee,” Says MAR CEO Bill Martin.

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With the help of McClelland & Anderson, we are taking the most recently asked questions from our legal hotline and putting them in E-news. We will be featuring a different question each issue.

QUESTION: I represent Sellers who are trying to negotiate a short sale. We have accepted an offer and presented it to the lender for approval. We have received a second offer, but have not heard back from the lender on the first offer. It is my belief that we can present this offer to the lender since the lender has not yet accepted the first contract. Am I correct?

ANSWER: This is not advisable as the Sellers have already accepted the first offer. It is likely that a court would conclude that lender approval is simply one contingency in a binding contract. The Sellers would be better advised to accept the second offer in a back-up position.

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Thanks in part to a national campaign sponsored by AAA, the act of composing, reading or sending electronic text messages while driving became illegal in Michigan effective last Thursday, July 1, 2010.

Michigan joins 27 other states in enacting this legislation, which prohibits behind-the-wheel texting via cell phones, laptop computers plus a host of other wireless communication devices. Certain emergency situations will be exempt.

The Penalties for Texting
Under Michigan law, texting while driving will be classified as a primary offense, which means you can be pulled over and ticketed based on a text messaging offense alone. Violators will face a fine of $100 for a first offense; $200 for subsequent offenses.

Ban Backed by Public
This welcome reform stems from a groundswell of public support, punctuated by the National Highway Traffic Safety Administration's findings attributing nearly 6,000 deaths and 500,000 injuries in 2008 to distracted driving habits such as texting.

Additional findings have shown that individuals who text while driving are more than 20 times more likely to be involved in a crash than non-distracted drivers. Michigan's new anti-texting law will help reduce this dangerous behavior and lead to safer roadways.

For more information on the dangers of distracted driving, plus tips on managing distractions, AAA encourages you to read The Facts About Distracted Driving.

 

AAA is a proud voice for millions of Michigan members on issues related to auto and pedestrian safety. Our advocacy on issues related to teen driving safety, child safety restraints, senior driver improvement and the new ban on text messaging have resulted in positive changes for all drivers.

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Stay on top of the latest educational courses and events from around the state with the Mirealtors.com Calendar of Events. 

 

Featured courses: 

 

Short Sale & Foreclosure Essentials
July 28, 2010 - Sandusky, MI

 

 

Bookmark the Mirealtors.com Calendar of Events today and check back often for newly added events.