It would be unfair to say that the Obama administration hasn’t been trying to restore the health of the housing market.  Unfortunately, it would be inaccurate to say that its programs are having much success.  The loan modification program is a worrisome case in point.

On February 18, 2009 the Treasury Department announced the Homeowner Affordability […]

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A recent memo from the legal department of the California Association of Realtors® has brought to our attention some changes in rules for advertising mortgage loans.  “The Federal Reserve Board has adopted, under TILA [Truth in Lending Act] Section 129(l)(2), 15 U.S.C. 1639(l)(2), rules to prohibit the following seven deceptive or misleading practices in advertisements […]

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At the recent annual governance meeting of the National Association of Realtors®, held in San Diego, the Board of Directors adopted a recommendation to expand its existing support of equal opportunity to include its application with respect to sexual orientation.  The exact wording of the motion was: “That existing NAR policy on equal housing opportunity […]

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It would be tacky to call it a cause for celebration, but California real estate agents can be gratified that the State Supreme Court has upheld the dismissal of Hughes v. Pair, a sexual harassment case.  Why should real estate professionals care about sexual harassment suits?  Because the laws involved apply to them. Most of those […]

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Two years ago the National Association of Realtors® formed a task force to address the vexing issue of short sales.  A multitude of members had complained of lengthy and often incomprehensible processes that – although they varied in detail from lender to lender – all seemed to share the characteristics of being inefficient and irrational.  […]

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“Bad facts make bad law”, they say, and the recent case of Robbins v. Davi, heard by California’s Second Appellate District Court of Appeal, drives that point home for real estate licensees. Did I say the facts were bad?  Try this:  Real estate broker and attorney, Lance Robbins, both owned and managed numerous “slumlord” apartments in […]

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There are no great surprises in the National Association of Realtors® 2009 Profile of Home Buyers and Sellers, but, as in the past, the annual survey contains information useful both for consumers and for brokers and agents.  The survey consisted of an eight-page questionnaire sent to 120,038 consumers who had purchased a home between July […]

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Move up, move down, move sideways; it just doesn’t matter.  Whichever direction you move, financially, you may still qualify for the new tax credit available to current homeowners.  It is unfortunate that the credit has too often been characterized as a credit for “move-up” homeowners.  The phrase carries the implication that the new home must […]

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The world has not turned completely upside down, but, believe me, it is leaning precariously.  Remember all those programs that were designed to turn renters into homeowners?  Now we have a program to turn homeowners into renters!  I refer, of course, to the Deed For Lease program rolled out by Fannie Mae on November 5, […]

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At their recent fall meetings, directors of the California Association of Realtors® (CAR) adopted the following motion:  “That C.A.R. in conjunction with NAR, “SUPPORT” the elimination of the FHA 90-day anti-flipping rule, and that C.A.R. write and publish a letter to the FHA Commissioner in opposition to the FHA 90-day anti-flipping rule.”  While support for […]

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Short-sale sellers and their agents have plenty to think about, and it is understandable if they are annoyed by the reams of paperwork that may come their way.  Nonetheless, it really is important not only to pay attention to what is in the paperwork but also to be sure to retain it for possible future […]

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Loan modification scams may not be the worst of monetary crimes, but they are certainly in the running.  Taking advantage of financially distressed homeowners, the most common form of these scams is this:  They take a large up-front fee (in the thousands) and then do nothing, or next to nothing, producing no beneficial results for […]

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There’s really nothing for real estate agents and brokers to like about a recent case brought to our attention by the legal department of the National Association of Realtors® (NAR).  Bowman v. Presley arose out of a 2005 transaction that took place in the state of Oklahoma.  The ruling came down from the Oklahoma Supreme […]

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The clock is ticking.  Time is running out.  To be exact, time runs out midnight, November 30, 2009.  Many readers will know what I am referring to.  Under the American Recovery and Reinvestment Act of 2009, November 30 is the last day for a home purchased by a first-time home buyer to qualify for the […]

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One reason that many real estate agents are less than enthusiastic about short sales is that, too often, a commissionectomy may be involved.  By demanding a certain amount of net proceeds, the lender effectively cuts the commission that had been stipulated in the listing agreement.  (To be sure, since March 1, 2009 Fannie Mae has […]

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According to researchers of the Financial Trust Index[1] (University of Chicago and Northwestern University) 81% of homeowners interviewed agreed with the statement that “it is morally wrong to walk away from a house when one can afford to pay the monthly mortgage.”  Are these survey respondents correct?  Is it really morally wrong to intentionally default […]

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If only the President’s foreclosure-prevention plan worked as well as “cash for clunkers”.  But it hasn’t.  When the Administration announced the Making Homes Affordable plan in February of 2009, officials said they hoped it would help 4 million distressed homeowners to stay in their homes.  As of this writing (8/2/09), the Administration has acknowledged that […]

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Under new rules adopted by the Federal Reserve Board, beginning July 30, 2009, mortgage lending will be subject to expanded disclosure requirements.  This may well be a good thing.  However, until everyone gets used to it, it also may cause occasional delays in closings.  First, some background.
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More than a few times home purchasers have been […]

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A recent headline in the business section of the Orange County (Calif.) Register noted that the median price of home sales had risen, but that the statistic was misleading.  Most of my Realtor® colleagues would complain that the paper was going negative again.  OK, point conceded; but the paper was correct.
 
The Register had noted that […]

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Many California Real Estate licensees know by now that, as of July 1, 2009, they are required to have their real estate license number displayed on “all solicitation materials intended to be the first point of contact with consumers…”  This includes “business cards, stationery, advertising flyers, and other materials designed to solicit the creation of […]

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