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1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
   • The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
   • If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
   • This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
   • The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.
2. Update the combination of FICO scores and down payments for new borrowers.
   • New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
   • This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
   • This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.
3. Reduce allowable seller concessions from 6% to 3%
   • The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
   • This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.
4. Increase enforcement on FHA lenders
   • Publicly report lender performance rankings to complement currently available Neighborhood Watch data – Will be available on the HUD website on February 1.
     • This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.
   • Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
     • Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
     • This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.
   • Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
     • Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.
   • HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:
     • Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
     • Legislative authority permitting HUD maximum flexibility to establish separate “areas” for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches

Oh everyonce in a while I read an article that I think I should share with you.  As those of you who personally know me will attest… I am a positive person!  The glass is always half full in my open mind.  So what do you think??? Is the market on it’s way back??  How long will it take to even get to the values of 2006?  Read this..

Realtors optimistic about 2010 market

Posted: Jan 15, 2010 4:40 PM EST Updated: Jan 15, 2010 6:05 PM EST

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Realtors optimistic about 2010 market 1:34

NAPLES: The housing market in Southwest Florida is back on the upswing, according to new numbers from Realtors in Collier County who say pending and closed sales in 2009 increased by double-digits from 2008.

Experts say this buyer’s market could be a seller’s market sooner than many had predicted.

“I think what it tells us is recovery is well under way and we’ve gone to the next level,” said Mike Hughes, VP at Downing-Frye Realty, Inc.

The new 2009 numbers from the Naples Area Board of Realtors show sales for homes listed under $500,000 were up 91-percent compared to 2008.

And overall, home sales in the county were up 48-percent.  

“People just have this pent up demand of wanting to purchase property. They see the values are out there right now,” said Kathy Zorn, President of Florida Home Realty.

She said those values include things such as low interest rates, foreclosures – and for the first time – a homebuyer tax credit.

Incentives like those made 2009 a good year for home sales. And Realtors say there are now 1,600 fewer homes on the market in Collier County than this same time last year.

“When you see that inventory is going down it feels like the tide is turning,” said Hughes.

Realtors say signs like these will soon be few and far between. And they have advice for those looking to buy a home.

“Don’t sit on the fence too much longer because the factors are changing,” said Hughes.

“The trends are all up and we’re very optimistic that 2010 is going to start raising prices,” said John Steinward of Naples Realty Services, Inc.

If that happens, Realtors say we could see a seller’s market sooner than many had predicted.  END OF ARTICLE

Here is some news right fromt he Chamber of Commerce.  Considering there are only two ways on and off our little piece of paradise (other then floating and flying) … you might want to be “in the know”!

Keller Williams Realty Ranked as Top Real Estate Franchise by Industry Leader and Entrepreneur Magazine AUSTIN, TEXAS (December 21, 2009) — Keller Williams Realty joined the ranks of the top franchises in the world last week, when the company was ranked as the No. 1 real estate franchise on the 31st Annual Franchise 500 list by Entrepreneur magazine. During the same week, the company was also voted the Most Recognizable Brand of Real Estate Franchises for 2009 in an industry-wide survey for the Swanepoel TRENDS Report. “The Swanepoel TRENDS Report is a respected source for the real estate industry and beyond, as is Entrepreneur magazine, and we are excited to see our agents honored in this way for all of their hard work,” said Mark Willis, CEO, Keller Williams Realty. “We certainly wouldn’t have been included on either list without the dedication and resolve of our agents.” According to the ranking in Entrepreneur magazine, the most important criteria to determine the top franchises included financial strength and stability, as well as growth rate and size of the franchise system. The magazine also looked at the number of years the company has been in business and the length of time it’s been franchising, in addition to start-up costs and financial data. Additionally, Keller Williams Realty made an impressive showing on the overall list, placing higher than any other real estate franchise. The Swanepoel TRENDS Report is published by Stefan Swanepoel, a real estate industry speaker and insider. The survey was crafted to determine the Most Recognizable Brand for Real Estate Franchises for his report out in February 2010. The survey included votes cast by 11,000 plus real estate agents, who cast 390,000 votes to select the top 10. Earlier in the year,Keller Williams Realty also received the highest overall satisfaction ratings from home buyers among the largest full-service real estate firms from J.D. Power and Associates for the second year in a row. “We are extremely proud that our associates and company are being recognized for our strength and stability during this time in our industry,” said Mary Tennant, president and COO, Keller Williams Realty. “We attribute our success to being in business with phenomenal people and to our core business models, which have allowed our franchises to thrive during any market.” ### About Keller Williams Realty Inc.: Founded in 1983, Keller Williams Realty Inc. is the third-largest real estate franchise operation in the United States, with 679 offices and 73,000 associates in the United States and Canada. The company, which began franchising in 1990, has an agent-centric culture that emphasizes access to leading-edge education and promotes an economic model that rewards associates as stakeholders and partners. For more information, visit Keller Williams Realty online at (www.kw.com).

So, I am sitting back looking at my laptop trying to figure out how to make folks understand that NOW IS THE TIME TO BUY ON MARCO ISLAND AND SOUTHWEST FLORIDA!  How do I convince my friends, family and clients that the market is perfect for WHATEVER  you want to do – buy or SELL! 

Okay, I wanted to give you an idea as to what our market is doing.  The Naples area has suffered just as the rest of the country from the past three years of economical duress.  Our prices have re-adjusted approximately 62% of their inflated highs of 2006.  The inflated prices were due to many things as we all know now;  Lending subprime market, over aggressive realtors pricing each home more then the last, investors who were not qualified to afford the purchases they were making… you see the picture. 

I would be happy to put you on an automated email system which will alert you to any new or revised listings of properties which may interest you.  This is a terrific way to keep on top of the market changes.  We are seeing prices leveling at this time.  You want to make sure you know when they start to move up again as when they do —- they will move quickly in some cases.  Our inventory is also reducing which will have an influence on the market values as well.  You want to keep on top of that too.

Well, let’s hope for a Happy, Healthy, Prosperous New Year!  Welcome 2010! 

Good afternoon all.  Well, just another day in paradise!  Beautiful 80 degrees and sunny.  It always amazes me that just when folks are going back up north to there “almost” great weather homes… we are just getting blessed with absolutely perfect weather.  If you are a boater – the trip to the Keys is stunning.  Flat water in the mornings with incredible sunrises and sunsets.  Just when folks leave – our weather goes “POW”.  Perfect! 

Okay, enough with the weather forecast. Let me chat about what I really know best – the real estate market on Marco Island and Southwest Florida.  Recently, Attorney Bill Morris on Marco Island  featured an article on his website..  here it is for your reading enjoyment…

04/15/2009

McCollum Unveils Website to Help Homeowners Avoid Mortgage Fraud-Related Scams

TALLAHASSEE, FL – Attorney General Bill McCollum today unveiled a new website designed to help homeowners avoid mortgage fraud-related scams. The website, at http://myfloridalegal.com/mortgagefraud, provides consumers with easy access to current investigations, complaint forms, and tips to identify and avoid foreclosure rescue fraud. Foreclosure rescue fraud, or fraud involving loan modifications related to foreclosures, is the complaint topic most commonly reported to the Attorney General’s Office and involves the charging of an up-front fee for foreclosure rescue services before any services are provided, if they are provided at all.

“Companies and individuals are taking advantage of our homeowners in these tough economic times by preying on their financial situations,” said Attorney General McCollum. “If we can increase consumer education and empower people to spot scams and avoid them in advance, we can help decrease the number of victims targeted by this fraud.”

Consumers can obtain information about active litigation involving companies the Attorney General has taken action against and can download affidavit forms to fill out if they have been victimized by one of the companies on the list. Consumers can also access a list of investigations being conducted by the Attorney General’s Mortgage Fraud Task Force to see if a particular company is currently being scrutinized.

The website also features answers to frequently asked questions, consumer tips, and a list of warning signs that a company or an individual might be engaging in foreclosure rescue fraud. Additional resources are also available, including a link to a new Florida Bar website containing information for attorneys and consumers on legal training, housing help workshops and clinics being held in Florida, and information concerning the Florida Bar Lawyer Referral Service and qualified legal aid agencies throughout Florida.

In 2007, Attorney General McCollum initiated an agency-wide Mortgage Fraud Task Force to address the issues of mortgage and foreclosure rescue fraud. Since then, the Task Force has filed six lawsuits, has settled with seven companies, and is actively investigating more than 50 additional companies under the Foreclosure Rescue Fraud Prevention Act, which took effect October 1, 2008. The Task Force has also reviewed information pertaining to the business practices of more than 200 foreclosure rescue businesses.

Earlier this month, Attorney General McCollum called together representatives from state agencies, law enforcement groups, prosecutorial entities and the Florida Bar to address the state’s mortgage fraud issues and to develop a cooperative approach on behalf of Florida’s homeowners. The group will focus on a systematic method of triaging complaints and a cooperative interagency consumer education initiative. By establishing a team approach, Florida will receive an “all hands on deck” approach to ensure no case goes unaddressed.

 

I try and read as many articles as I can regarding real estate, investments, market status etc.  I do this so that I can keep a pulse of the market – I believe this is what my clients need PLUS I have always thought that KNOWLEDGE IS POWER!  So, recently I read an article by Jeff Adams.  He writes a real estate investors column.  Here are his thought – which I thought I would share. 

The Japanese have a saying “fall down 6 times, get up 7”. With almost every situation in life, weather it be business, family, relationships, and/or money, if you adopt this attitude you will become unstoppable.

The following 23 mistakes are the most common responses that I (Jeff Adams) received when asked successful investors to talk about their past.

Read them, study them and don’t forget them. Anybody can receive information, it is the wise man that prospers by it and puts it to use.

1) Waiting Too Long to Start Real Estate Investing
2) Not Having a Plan
3) Not Requiring Written Repair Bids – Every Time
4) Not Charging Tenants for Damage
5) Not Screening Tenants for Eviction Risks
6) Paying for Repair or Construction Before 100% Completion
7) Paying Full Price for Late Repair of Construction
Allowing Your Real Estate Business to Run Your Life
9) Over-Improving a Property Bought to Flip or Rent
10) Running Out of Cash
11) Forgetting About Asset Protection
12) Over-Analyzing Property
13) Becoming Friends with Tenants
14) Underinsuring Property and Risk
15) Ignoring Cash Flow
16) Punishing Bad Tenants Without Rewarding Good Ones
17) Permitting Tenants’ Problems to Spoil the Positives of Real Estate Investment
18) Letting Rent Collections Get Personal
19) Only Looking at Properties When There Is a Problem
20) Missing Out on Special Loan Programs
21) Inability to Sell a Rehab Property or to Rent a Rental Property
22) Not Thinking of Tenants as Potential Buyers
23) Renting to Relatives