LIEB BLOG

Legal Analysts

Sunday, November 21, 2010

Department of State Update - For Real Estate License Renewal

Real Estate Tips , The Real Estate School
Department of State Update - For Real Estate License Renewal
ONLINE RENEWAL FOR REAL ESTATE LICENSEES

Beginning February 1, 2010, Licensees will no longer be sent a paper renewal in the mail. In accordance with New York’s Green Initiative, the Division of Licensing Services will be requiring that all real estate licensees renew their licenses online. When a license is due for renewal, the licensee will be notified in two ways: a postcard reminder will be sent to the licensee’s business address and an email reminder will be sent to the email address provided in the licensee’s eAccessNY account. In addition, brokers will be included in the email reminders(a “cc” copy) for any salespersons and associate brokers who are employed by their office. Both of these renewal reminders will include instructions on how to renew a license online utilizing eAccessNY.

The online renewal process is a much quicker and more efficient process. Online renewal applications that meet the requirements will be approved immediately and licensees will receive their License and Photo ID Card within two to three weeks.

Instructions for Completing an Online Renewal

To renew your license online you must have an active eAccessNY account and follow the directions below:

• Go to the Department of State website, www.dos.state.ny.us, and select the eAccessNY link (to the right of the screen)
• Select “access” link under item 3, “Access My Account” and log into your account
• Select list of licenses/select the license number you wish to renew
• Select the “Renew License” link and complete the online application


If you have not yet activated your eAccessNY account, NOW is the time. Please email us at eAccessNY@dos.state.ny.us to obtain a password for your account.

Further updates will be posted as we move forward with this new requirement.
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Home Inspection - Code of Ethics

Real Estate Tips ,
Home Inspection - Code of Ethics
On October 27, 2010, the Code of Ethics for Home Inspectors was adopted. Click here to read the Code.
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Debt-to-Income ratios get tougher by FANNIE MAE

Foreclosure Defense , Mortgage Trouble
Debt-to-Income ratios get tougher by FANNIE MAE
At the beginning of our recent class, entitled Mortgage Mania at Bethpage FCU, I was asked a question, which was more like a statement, inquiring if a lower Loan to Value (L/T) ratio (more money down) was a key predictor of default risk.

IN ENGLISH - If a borrower puts down more money (has more equity) shouldn't that imply they won't default? I took issue with this statement by saying that I believe that back-end Debt to Income (DTI) ratio mattered a hell of a lot more. My rationale was that even if you had a lot of skin in the game, your inability to make your mortgage payments trumped your desire to make your mortgage payments. The student took issue with my sentiment throughout the class thereafter by defending his position.

It’s true that both L/T ratio and DTI ratio are relevant and evaluated by lenders in making a loan. Yet, my message was that DTI ratio is much more important in making the determination to provide funding. 

It turns out that FANNIE MAE agrees. They just changed, effective December 13, 2010, their requirements with respect to each of the above discussed ratios. Specifically, maximum DTI ratios for a conventional mortgage change from 55% to 45% under the new guidelines. Additionally, borrowers can now utilize gifts and grants to satisfy their minimum down payment, which impacts the L/T ratio. To read a great New York Times article that summarizes these changes, click here. Remember, that FANNIE MAE sets the standards for the rest of the industry because they are the largest secondary market purchaser, so this will likely become the standard.

The takeaway for students reading this blog is that a lender cares more about your ability to pay (how much money you have left at the end of the month after paying your other bills) as opposed to your desire to pay (how much equity you have to lose if you don't pay).

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