HUD Asks for Public Comment on RESPA Rules Regarding Affiliated Business Arrangements

As recently stated on the OAITA blog,

HUD has just announced that it is now seeking public comment until September 1, 2010 concerning the "required use" of controlled business arrangements by way of the Advance Notice of Proposed Rulemaking (ANPR).

You can make comments here.  Click on the Public Submissions to see the comments from others.

The purpose of the ANPR is to solicit information that can be used to inform any future revision or clarification of the regulatory definition of the "required use" of affiliated settlement service providers in residential mortgage transactions.

While that sounds broad, the ANPR is principally directed at homebuilders. The ANPR was launched once before and tabled in 2008. The latest ANPR is in response to the complaints that homebuyers have sent to HUD concerning the practice of homebuilders forcing their customers to use a builder's affiliated mortgage lender in exchange for construction discounts, etc.

The specific requests HUD provided within the latest ANPR suggest a sole focus on the homebuilder question, not realtor-owned or bank-owned CBAs. With the weakened state of the homebuilder lobby and the desire on the part of real estate and bank lobbies to squeeze more business out of the settlement service market, look for the homebuilders to get creamed with this rule.

Further driving a pessimistic view of the ANPR is the fact that the former guru of the CBA program for Long & Foster Realty is now the Director of FHA within RESPA and has heavy influence over the Interstate Land Sales office from which RESPA compliance activities are launched.

Closing Date and Possession Date the Same! Really?

In the past within the central Ohio real estate market place, it was more common that the closing date was different than the possession date. The closing date is the day title legally changes hands. When the buyer gets possession of the property is always negotiable.

Again, it used to be customary in our area to give the seller an extra 3 to 4 days to move out completely. Ideally, in a perfect world the buyer gets possession on the day the deal closes, however, in today’s crazy last minute world, I’m not so sure that possession date and closing date should ever be the same. For both the buyer and seller, this can wreak havoc on their personal and financial lives.

Within the last year, we have seen closing after closing where the seller has moved out of the house only to find that the buyer does not get approved until the very last minute or not at all.

We have even had deals where the buyer's loan was still in underwriting and "not approved" until they walked into the closing room. I could write a chapter or two on "bomb outs". This does not make good sense for either side when they have their moving trucks in our parking lots and it doesn’t close that day or worse off doesn’t close the next day or even weeks later.  You can only imagine the ramifications.

2010 Multi-Chamber Business After Hours & Expo

PLEASE STOP BY OUR BOOTH!

The Dublin Chamber, in conjunction with the Westerville, Worthington and Powell Chambers of Commerce, will host the 2010 Chamber Business Expo. One of the best business development events of the year, the Expo brings together more than 100 vendors and 600 area business representatives!

The 2010 Chamber Business Expo takes place from 4:30 to 7 p.m. June 17 at the Bridgewater Banquet & Conference Center, 10561 Sawmill Pkwy., Powell.

Admission is free to this great networking event. Complimentary hors d’oeuvres and a cash bar are available. In addition, you will have the opportunity to enter to win one of many great door prizes.

To RSVP to attend as a guest, please submit the form below.

https://www.dublinchamber.org/_register.cfm?eventID=515&CFID=6040135&CFTOKEN=35493414

Why a Survey?

For most Americans, their home is their major investment. People protect their investment by insuring it, making needed repairs, etc. It is also vitally important that they know the boundary lines of the property they own and to determine if other such encroachments such as a neighboring fences exist. A survey will also tell you whether the legal description of your property is accurate.

When purchasing a home or a parcel of land, people need the services of a Professional Land Surveyor, licensed in the State of Ohio.

Surveys are also done to determine utility easements, accessibility to the property, joint driveways, encroachments, overhangs or projections. It is not uncommon for a utility company to have the right to access and use part of your property for the maintenance of underground or above ground utility lines such as gas, electric, phone and cable.

“Also, before making any improvements such as home additions, new garages, driveways, fences, or even landscaping, you need to know that you are making the improvements on the land you own rather than on your neighbor’s land”, says AJ Myers of Myers Surveying Company.

Surveyors can also certify that you are not in a Flood Plain and help you avoid costly insurance. Surveyors are needed if you are dividing your land, if you are having a boundary dispute with your neighbor, if you have a deed that you may believe is incorrect.

Protect your major investment, contact AJ Myers of Myers Surveying Company, a highly reputable Professional Land Surveyor.

Ohio Abolishes Use of Transfer on Death Deed

Effective January 2, 2010, a new bill known as S.B. 124 became law in Ohio which effectively abolishes the use of transfer upon death deeds in Ohio and replaces them with transfer upon death affidavits. The new affidavit requires a description of the property, the specific interest to be transferred if it is to be less than the entire interest, a statement by the individual executing the affidavit that he is the record owner of the property, and if the owner is married the affidavit must include a statement by the owner's spouse subordinating the spouse's dower interest. The bill also allows a person to designate less than his/her entire interest as transferable on death. 

The IndyMac slap in our face

You won't believe the sweetheart deal that the Indymac boys were given by the FDIC.  Check it out at http://www.thinkbigworksmall.com/mypage/player/tbws/23088/1556674

Columbus!!! - Best Places To Get Ahead 2010

What is Registered Land?

I'm asked this question several times a year so here is a clip from the Hamiliton County Recorder website:

The concept of Registered Land was conceived in the 19th century with the establishment of private title insurance companies. These companies guaranteed a clear title to prospective buyers of real estate. This guarantee, of course, protected lending institutions and their investors as well.

This concept evolved into law with the Torrens Act in 1913 that was adopted by the State of Ohio. Under this Act, any property owner can voluntarily petition to have his land "registered".

Registered Land is surveyed, and the boundaries are guaranteed correct by the state. It is also subject to specific codes set by law. The title is guaranteed by a state insurance fund against loss to the property owner from land examiner and/or Recorder errors. Adverse possession cannot be claimed against Registered Land, and property owners must be notified of any involuntary liens within a specified time. All parcels that have been registered under the provisions of this law have a document known as a Certificate of Title that shows ownership. A Registered Land Examiner approved by the court must handle most of the paper work involved with a Certificate of Title. Changes to Registered Land must be approved by the Court.

There is presently more Registered Land in Hamilton County than any other county in the State of Ohio.

New HUD-1 / GFE

In case you haven't seen the new HUD-1/GFE:
Example - New HUD 1

Example - New GFE

Are the "Junk" fees really going to go?

You know how I feel about "junk" fees and frivolous charges appearing at the last moment on a settlement statement.

An excellent article from Ken Harney at the Daily Herald regarding the new HUD 1/GFE scheduled for January 1, 2010.

Click here for the article