Making Home Affordable - New Handbook Available - Version 4.1

To access the new Handbook for MHA, inclusive of HAMP and HAFA, click here. While reviewing the Handbook you should be aware of the case of Flagstar Bank v. Walker wherein the Court held that the statutory good faith standard for a CPLR 3408 Foreclosure Settlement Conference is compliance with the Handbook. To review the case, click here.

This Handbook is the rules for banks / servicers to modify mortgages, so pay careful attention to detail and make sure that they comply.

Making Home Affordable Statistics Published through October 2012

Highlights:

• >1.1 million homeowners have received a permanent modification through HAMP.
• 74% of non-GSE borrowers entering HAMP in October, 2012 received a principal reduction
• >78,000 HAFA short sales have been completed

To read the full report, click here. 

The report contains a lot of positive news and those seeking relief from mortgage nightmares should be encouraged. 

NY Real Estate License Requirements: Learn the Facts

Salespersons - Listen Up!

1. Your license is regulated by the Department of State, New York (DOS) and NOT by any real estate school or trade organization.
2. Ethics courses are NOT required to maintain your real estate license with the Department of State, New York (DOS). 

Learn the Facts: Real Estate Continuing Education in NY 

Every 2 years, licensed real estate brokers and salespersons in the State of New York are required to take 22.5 continuing education credits. The ONLY mandatory class requirement is at least 3 hours of instruction pertaining to fair housing and/or discrimination in the sale or rental of real property or an interest of real property, within the 2 - year period immediately preceding a renewal.

Exemptions:  Licensed Real Estate Brokers who are engaged full time in the real estate business and who have been licensed for at least 15 consecutive years immediately preceding license renewal. This exemption must have been met prior to July 1, 2008.  An attorney admitted to the New York State bar is also exempt from the Continuing Education Requirement.

Ethics

Ethics training is NOT a required course for a Real Estate Broker or Salesperson to maintain their license in full force and effect with the Department of State, New York. Ethics courses may be required by your local Board (trade organization), but are not required to maintain your license with the Department of State of New York.

Supplemental Directive 12-09 expands on Debt-to-Income Ratios Required on Rental Home Modifications

To read the Supplemental Directive, click here.

It addresses the following topics:

• HAMP® Modified Loans Repurchased from GSEs
• Debt-to-Income Ratio Eligibility
• Single Point of Contact (SPOC) Clarifications
• Dodd-Frank, Identity and Occupancy Verification Clarifications
• Handbook Mapping Clean-Up and Clarifications

Citi's HomeRun Mortgage Program & Deal Killers: Don't Let your Deal Die

Last evening, we instructed our continuing education course, Deal Killers: Don't let your deal die, at Briarcliffe College in Patchogue. 

During the course we received many questions from students about what alternatives there were to FHA funding to help SAVE a deal for a highly leveraged transaction. Our friends at Citi suggested the HomeRun program.

Here are the details: 

WHAT IS HOMERUN?

HomeRun is Citi’s exclusive portfolio Program that has no mortgage insurance and no price ups. It is designed as a responsible financing solution to meet the needs of the low-and moderate-income (LMI) borrower. It provides the stability of a fixed rate, the flexibility of lower down payment options, and the added borrower protection of a relationship with a nonprofit housing organization committed to helping the borrower stay on track with payments. Fannie Mae Community Lending guidelines apply except as modified by the Mortgage Policy Manual (MPM) Fact Sheet.

• 97% LTV financing
• 3% seller contribution toward closing costs and prepaids on CLTVs greater than 90%, 6% on CLTVs 90% or less
• Minimum FICO score is 640
• Non-traditional credit is allowed with insufficient credit history and no FICO score
• No mortgage insurance
• Available to returning and first time homebuyers as well as existing Citi customers

Additionally, Citi has provided access to the Federal Financial Institutions Examination Council's Geocoding System that they discussed last evening. Click here to learn more. 

The Mortgage Forgiveness Debt Relief Act & National Association of Attorneys General

On May 9, 2012 we blogged about the importance in extending the Mortgage Forgiveness Debt Relief Act of 2007. To read that blog, click here.

On November 20, 2012, the National Association of Attorneys General joined the cause by writing this letter to the Congressional Leadership of our Federal Government.

Additionally, the Real Property Committee of the Suffolk County Bar Association also drafted a similar letter to our local leadership in the region.

Its imperative that this act is extended to protect those vulnerable community members who have underwater homes. Additionally, there are many secondary and tertiary effects on our local economy that will be realized if this act is not extended.

Please contact your representative and stress why this Act should be extended.